Berkeley City Council
January 27, 2022

Thursday, January 27, 2022 WORKSESSION AGENDA Page 1

PROCLAMATION

CALLING A SPECIAL ME ETING OF THE

BERKELEY CITY COUNCI L
In accordance with the authority in me vested, I do hereby call the Berkeley City Council in special session as follows:

Thursday, January 27, 2022
6:00 PM

JESSE ARREGUIN, MAYOR
Councilmembers:

DISTRICT 1 – RASHI KESARWANI DISTRICT 5 – SOPHIE HAHN
DISTRICT 2 – TERRY TAPLIN DISTRICT 6 – SUSAN WENGRAF
DISTRICT 3 – BEN BARTLETT DISTRICT 7 – RIGEL ROBINSON
DISTRICT 4 – KATE HARRISON DISTRICT 8 – LORI DROSTE
PU
BLIC ADVISORY: THIS MEETING WILL BE CONDUCTED EXCLUSIVELY THROUGH

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Pursuant to Government Code Section 54953(e) and the state declared emergency, this meeting of the City Council will be conducted exclusively through teleconference and Zoom videoconference. The COVID -19 state of emergency continues to directly impact the ability of the members to meet safely in person and presents imminent risks to the health of attendees. Therefore, no physical meeting location will be available.

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This meeting will be conducted in accordance with the Brown Act, Government Code Section 54953. Any member of the public may attend this meeting. Questions regarding this matter may be addressed to Mark Numainville, City Clerk, (510) 981-6900. The City Council may take action related to any subject listed on the Agenda. Meetings will adjourn at 11:00 p.m. - any items outstanding at that time will be carried over to a date/time to be specified. 1 Thursday, January 27, 2022 WORKSESSION AGENDA Page 2

Preliminary Matters
Roll Call:

Worksession

1. Tenant Opportunity to Purchase Act, Adding B.M.C. Chapter 13.89 From: Mayor Arreguin
Contact: Jesse Arreguin, Mayor, (510) 981-7100
Public Comment - Items on this agenda only
Adjournment
I hereby request that the City Clerk of the City of Berkeley cause personal notice to be given to each member of the Berkeley City Council on the time and place of said meeting, forthwith.

IN WITNESS WHEREOF, I have hereunto set my hand
and caused the official seal of the City of Berkeley to be affixed on this 20
th of January, 2022.

Jesse A
rreguin, Mayor
Public Notice – this Proclamation serves as the official agenda for this meeting.

ATTEST:

Date: January 20, 2022
Mark Numainville, City Clerk

NOTICE CONCERNING YOUR LEGAL RIGHTS: If you object to a decision by the City Council to approve or deny an appeal, the following requirements and restrictions apply: 1) Pursuant to Code of Civil Procedure Section 1094.6 and Government Code Section 65009(c)(1)(E), no lawsuit challenging a City decision to deny or approve a Zoning Adjustments Board decision may be filed and served on the City more than 90 days after the date the Notice of Decision of the action of the City Council is mailed. Any lawsuit not filed within that 90-day period will be barred. 2) In any lawsuit that may be filed against a City Council decision to approve or deny a Zoning Adjustments Board decision, the issues and evidence will be limited to those raised by you or someone else, orally or in writing, at a public hearing or prior to the close of the last public hearing on the project.

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Channel 33 rebroadcasts the following Wednesday at 9:00 a.m. and Sunday at 9:00 a.m.

2 Thursday, January 27, 2022 WORKSESSION AGENDA Page 3
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Office of the Mayor

WORKSESSION
January 27, 2022
To: Honorable Members of the City Council
From: Mayor Jesse Arreguín
Subject: Tenant Opportunity to Purchase Act, Adding B.M.C. Chapter 13.89

INTRODUCTION
The proposed Tenant Opportunity to Purchase Act (TOPA), which would add Chapter

13.89 to the Berkeley Municipal Code, is a policy that empowers tenants to determine the future of their housing when a rental property owner is ready to sell, by giving tenants the opportunity to collectively purchase the property they live in. It does this by creating legal rights for tenants to purchase or assign rights to an affordable housing developer, and providing technical assistance, education, and financing to help make these purchases possible. TOPA provides a way to stabilize existing housing for tenants and preserve affordable housing in Berkeley. It also creates pathways for tenants to become first-time homeowners and facilitates democratic residential ownership.

TOPA requires owners of residential rental property in the City of Berkeley prior to sale or transfer of their property to 1) notice to existing tenants and Qualified Non-Profit organizations (hereinafter “Qualified Organizations”) of their intent to sell and 2) give Qualified Organizations the Right of First Offer to express interest and submit an offer to purchase. The ordinance also confers a Right of First Refusal to Qualified Organizations to match third party offers submitted.

Ultimately, the property owner may reject any offers from Qualified Organizations and accept third party offers to sell or transfer the property after the established TOPA timelines. The timelines were designed based on input from Washington D.C and San Francisco which have Opportunity to Purchase laws. In addition, the authors consulted lenders, realtors, and affordable housing developers. The timelines are intended to provide the necessary time for parties to meaningfully exercise their rights to purchase the property.

TOPA sales would have longer escrow periods to provide tenants time to organize, engage in technical assistance, form an organization that would qualify for financing, and obtain the necessary financing to close a transaction. To incentivize owners to participate in a TOPA transaction, owners who sell to tenants or a qualified organization will receive a refund in the amount of the City’s portion of the Real Property Transfer Tax (.75%) not including the proportional amount attributed to Measure P.

5 Tenant Opportunity to Purchase Act (TOPA) CITY COUNCIL WORKSESSION January 27, 2022
2 TOPA applies to the sale or transfer (as defined in the ordinance) of all residential rental properties in the City of Berkeley with the following exceptions:

1. Any Rental Property comprised entirely of owner-occupied Rental Units, including any owner-occupied Single-Family Dwelling;

2. Any Accessory Dwelling Unit (inclusive of any junior Accessory Dwelling Unit) located on the same parcel of an owner-occupied Single-Family Dwelling or owner-occupied Accessory Dwelling Unit;

3. Transfers to family members;

4. Transfers by inheritance;

5. Sale of properties of 4 units or less for the purpose of paying imminently necessary health care expenses of an Owner of the Rental Property.

Owners of rental properties that are exempt can receive the benefit of TOPA incentives if they comply voluntarily with TOPA policies and procedures.

The First Right to Purchase is conferred to tenants, and includes a right of first offer, right of first refusal, and a right for tenants to assign rights to a qualified affordable housing organization. The ability to assign rights benefits tenants who cannot purchase but wish to maintain affordable tenancies. It also benefits affordable housing developers as tenant buy-in is often critical to the successful management of the property. If tenants waive their rights, the list of qualified affordable housing organizations have a second opportunity to purchase the property. Qualified affordable housing organizations are vetted and must meet criteria such as being committed to permanent affordability and democratic residential control.

The policy is designed to preserve existing affordable housing and create new affordable housing for future generations. Any TOPA property that receives City investment would be deed restricted to ensure that the property remains permanently affordable.

Multi-tenant buildings that include a mix of TOPA buyers and tenants who wish to continue renting will be required to ensure tenant protections and the enforcement of tenant’s rights. This will prevent any internal displacement caused by the exercising of TOPA rights.

Moving forward a TOPA policy will require detailed Administrative Regulations and a well-funded infrastructure to administer and enforce the policy. There is also a vital need to provide adequate education, legal and technical assistance to tenants as part of the implementation. As such, there is a requirement for tenants to engage a City approved supportive partner to assist in all aspects of the transaction, including submitting the initial offer. Finally, a more robust and vibrant acquisition fund will be required that can work efficiently with the TOPA ordinance. This funding could be accommodated through the Small Sites Program with potential funding coming from

6 Tenant Opportunity to Purchase Act (TOPA) CITY COUNCIL WORKSESSION January 27, 2022
3 Measure U1 tax receipts, the Housing Trust Fund, and Measure O or through another funding mechanism including grants and future regional subsidy1.

CURRENT SITUATION AND ITS EFFECTS
The proposed Tenant Opportunity to Purchase Act would advance the following Strategic Plan Priorities:
 create affordable housing and housing support service for our most vulnerable community members.
 champion and demonstrate social and racial equity.

POLICY COMMITTEE REVIEW AND RECOMMENDATION
On March 10, 2020, the Tenant Opportunity to Purchase Act (TOPA) was first presented to the Berkeley City Council’s Land Use, Housing and Economic Development Policy Committee. The presentation generated extensive public comment from 61 speakers, equally split between support and opposition. COVID-19 shelter-in- place orders were initiated the following week and, with concurrence by the Policy Committee, the item was placed on the list of Unscheduled Items.

Over the next 12 months, revisions to the policy were made and an updated staff report and draft Ordinance was presented to Policy Committee on March 18, 2021, at which time the Committee heard from 60 public speakers. It was suggested that a special Policy Committee meeting be scheduled at a future date with adequate time allotted for public comment and Committee discussion.

On May 6, 2021, TOPA came back before the Policy Committee, there were 48 public speakers and no discussion from the committee. The item was continued to May 20, 2021.

Prior to the May 20th meeting, Mayor Arreguin proposed amendments (Attachment #1) responding to public input received and addressing implementation issues. The Mayor’s proposed amendments were as follows (also contained in Attachment 2):

Exemptions (13.89.050)
• Clarify that any owner-occupied properties exempt under the ordinance must be the “principal residence” of the owner.
• Exempt all Single-Family Homes (SFH) from TOPA except investor-owned SFH properties using a definition based on language in AB 1482 (state rent cap law).

CA Civil Code Section 1947.12 (AB 1482) defines investor-owned properties as (i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
(ii) A corporation.
1 https://www.google.com/url?q=https://abag.ca.gov/sites/default/files/documents/2021-02/Launching%2520BAHFA- Regional%2520Housing%2520Portfolio_2-24-
21_v6.pdf&sa=D&source=editors&ust=1615589062074000&usg=AOvVaw3u4K_b2vbj9BZ2J41dWjql

7 Tenant Opportunity to Purchase Act (TOPA) CITY COUNCIL WORKSESSION January 27, 2022
4 (iii) A limited liability company in which at least one member is a corporation. • In addition to exempting Single Family Homes and Accessory Dwelling Units where an owner resides in one of the units as their principal residence, also exempt all owner- occupied Duplex properties where one of the units is the owners’ principal residence or that of a family member defined as “Eligible Persons” in Section 13.89.050.B.10. • Give tenants standing to file a complaint of non-compliance with the City if there is evidence that a property should be covered under TOPA and is not entitled to an exemption.

Right of First Refusal (13.89.100)
Shorten the timelines for the Right of First Refusal process as follows:
• Acceptance of offer:
o 5 business days all properties (currently 10 or 30 days) • Close of transaction:
o 45 days (under 5 units) (currently 90 days)
o 90 days (5 units or more) with one 30-day extension upon demonstrating that it is diligently pursuing financing or completing other requirements to close the transaction, to be further defined in the Administrative Regulations Clarifying Language
• Include prior definition of “Sale”
• Right of First Offer Reset:
o Right of First Offer will not reset unless Owner backs out of sale after escrow has opened.
o If Tenant or QO backs out of sale after escrow has been opened, then Owner will be exempt from complying with TOPA for 12 months.

Implementation Phase-In
• Delay the effective date of the ordinance until July 1, 2023 so that the program can launch fully resourced This would align decisions on funding implementation with the FY23 budget process and provide sufficient time to fund and implement staffing, acquisition funding, and supportive partners.
• Refer to the FY 2022 Budget process $100,000 for the purpose of hiring a consultant to:
o Conduct an Equity Study to inform implementation of TOPA o Draft Administrative Regulations
o Develop the program model
o Identify staffing and administrative funding needs at time of effective date for successful launch and ongoing administration of the program o Evaluate capacities and costs/benefits of various agencies (COB, Housing Authority, Rent Board, potential not-for-profit partners) to launch and administer the program

8 Tenant Opportunity to Purchase Act (TOPA) CITY COUNCIL WORKSESSION January 27, 2022
5 o Identify potential ongoing funding sources to support housing purchases and program administration over at least 5 years
o Assess other administrative and programmatic needs to support success.

The Committee made the following recommendation after taking public comment and extensive discussion:

Action: 63 speakers. Discussion held.

M/S/C (Hahn/Robinson) to make a Qualified Positive Recommendation to:

1. Send the item to the full Council incorporating the Mayor’s May 20, 2021 amendments with the following revisions:
i. Increasing the Acceptance of Offer timelines for the Right of First Refusal process from 5 days to 14 days;
ii. Adding the possibility of a 30-day extension to the Close of Transaction timelines for the Right of First Refusal process for properties under 5 units;
iii. Clarify that the budget referral of $100,000 would be for the purpose of hiring “consultants” rather than “a consultant” who would additionally “recommend any adjustments to the policy that may be warranted”;
iv. Clarifying that the definition of “children” includes stepchildren, and further referring to Council to consider the possibility of adding nieces and nephews; and v. Referring to Council to consider the possibility of including parents into the imminent healthcare expense provision; and

2. Recommend the City Council consider the possibility of a phased launch of the Ordinance wherein properties over 5 units would be covered first followed by the remainder of other properties after two or three years.

Vote: Ayes – Hahn, Robinson; Noes – Droste.

POLICY CHANGES PROPOSED AFTER MAY 20, 2021 COMMITTEE MEETING From the May 20, 2021 Committee meeting to the end of 2021, the Mayor has met with the TOPA supporters to discuss further Ordinance modifications. The Mayor has also met with the City Attorney’s office regarding specific legal issues including making amendments to reflect the Committee’s recommendation and any subsequent proposals, and brought on a CORO Program Fellow to provide research and produce a white paper on the New York City HDFC Co-op structure (Attachment 4).

In order to gain a better understanding of the cost to implement the TOPA policy, City staff produced an overview of an implementation plan, staffing required and ongoing costs to implement (Attachment 5). This information will inform the amount of funding the program will require for administration and the date that the policy will take effect. It

9 Tenant Opportunity to Purchase Act (TOPA) CITY COUNCIL WORKSESSION January 27, 2022
6 is also one of the responses required of the City Manager in the Policy that was submitted on March 10, 2020 (Attachment 6)
Following feedback from Land Use Committee members, public comments received and meetings with TOPA supporters, the Mayor is proposing the following changes to the TOPA ordinance:
 Exempting non investor-owned Single Family Residences (as defined in AB1482) inclusive of those with an ADU and/or JADU, if that is the Owners only rental property in Berkeley.
 Exempting owner-occupied duplexes if (a) one of the units it the Owner’s principal residence and (b) that the property is the Owners only rental property in Berkeley.
 Preserve offer/acceptance and closing timelines for Right of First Refusal as proposed prior to May 20, 2021 revisions.
 If Tenant(s)/Qualified Organization(s) back out of a sale after escrow has been opened, Owners would be exempt from TOPA for a fixed 12-month period following escrow cancellation.
 Sale defined as: (a) A transfer in exchange for money or other economic value, including beneficial use of a rental property, (b) change in ownership as defined by the IRS, and (c) multiple transfers of minor interests that result in a transfer of rental property.
 Implementation Phase-In:
o Notice of Sale to take effect within 30 days following second reading of the Ordinance.
o Full implementation of all other TOPA provisions to take effect upon adoption of Administrative Regulations. This will phase full implementation of TOPA when there is adequate staffing and funding to launch the program.

There remain two (2) outstanding policy modifications that are under consideration by the office of the City Attorney:
 A speculation fee similar to New York City’s HDFC program  Ensuring that vacant rental properties fall under TOPA and would be offered to Qualified Organizations under the same timelines afforded to QOs in the ordinance.

A revised Ordinance (Attachment 1), dated January 3, 2022, is being reviewed by the City Attorney for form and compliance incorporating the proposed changes, except for the two outstanding policy issues. The City Attorney’s office will also include the Land Use Committee’s recommended amendments as an option for Council to consider.

ADDITIONAL RESOURCES/FEEDBACK
Since initial submittal in March 2020, there have been several articles written about the benefits of TOPA to tenants and ongoing affordability in communities seeing rapidly

10 Tenant Opportunity to Purchase Act (TOPA) CITY COUNCIL WORKSESSION January 27, 2022
7 rising property values and rental rates. The following are excerpts are from policy and housing advocates:

LISC
“…existing TOPA and COPA policies and proposals, including how they can advance equity in housing and stabilize communities…..”
https://www.lisc.org/our-resources/resource/advancing-equity-housing-tenant- opportunity-purchase-act/
PolicyLink
“….strategies that cities can lead to creating equitable housing outcomes for residents by moving privately owned rental housing into tenant or nonprofit ownership to avoid speculation, promote community control, and create permanently affordable housing. It describes what an equitable housing acquisition strategy is, why cities should implement one now, and what are the local capacity, policy, and finance tools needed.” https://www.policylink.org/resources-tools/housing-acquisition-strategies SPUR
“Give tenants, public agencies and affordable housing nonprofits the first opportunity to purchase multifamily buildings or parcels when they are put on the market.” See page 24 https://www.spur.org/sites/default/files/2021-
05/SPUR_Rooted_And_Growing_Report.pdf

CONTACT PERSON
Jesse Arreguín, Mayor, 510-981-7100
Attachments:

1. January 3, 2022 Proposed TOPA Ordinance

2. May 20, 2021 Mayor’s Proposed TOPA Amendments

3. May 6, 2021 Revised TOPA Background Report

4. CORO Fellow Research paper, “NYC HDFC Co-op Overview”

5. HHCS Analysis of Staffing and Costs to Implement TOPA

6. March 10, 2020 Original Submittal, Tenant Opportunity to Purchase Act, Report and Ordinance

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ORDINANCE NO. -N.S.

ADOPTING CHAPTER 13.89 OF THE BERKELEY MUNICIPAL CODE

TENANT OPPORTUNITY TO PURCHASE ACT
BE IT ORDAINED by the Council of the City of Berkeley as follows:

Section 1. Chapter 13.89 is hereby added to the Berkeley Municipal Code to read as follows:

Chapter 13.89

TENANT OPPORTUNITY TO PURCHASE ACT

13.89.010 Title and Purpose

13.89.020 Findings

13.89.030 Definitions

13.89.040 Applicability

13.89.050 Sale Defined

13.89.060 Exemptions

13.89.070 Qualified Nonprofits

13.89.080 Supportive Partners

13.89.090 Notice of Intent to Sell; Statement of Interest

13.89.100 Right of First Offer

13.89.110 Right of First Refusal

13.89.120 Contract Negotiation

13.89.130 Incentive to Accept Offer from Qualified Organization

13.89.140 Confidential Information Protected

13.89.150 Prohibited Conduct

13.89.160 Complying Anew with the Right of First Offer

13.89.170 Financial Assistance

13.89.180 Price Stabilization; Tenant Protections

13.89.190 Implementation

13.89.200 Enforcement

13.89.210 Severability

13.89.010 Title and Purpose.

A. This Chapter shall be referred to as the Tenant Opportunity to Purchase Act.

B. The purpose of this Chapter is to confer upon Tenants of Rental Properties as

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defined herein a right of first offer and a right of first refusal upon the transfer or sale of Rental Property, and to create an incentive for Owners of Rental Properties to offer their property for sale to Tenants residing there.

13.89.020 Findings.

A. As the Bay Area region experiences increased economic growth and a high demand for housing, housing prices continue to rise which leads to displacement of low- income residents.

B. The current need for affordable housing units in Alameda County is 51,732 units (California Housing Partnership). Approximately 20% of residents in Berkeley are living in poverty.

C. The lack of affordable housing for Berkeley’s low-income communities is resulting in Berkeley residents having no option but to leave the City entirely or risk becoming homeless. Currently, there are an estimated 2,000 people who experience homelessness in Berkeley each year, and in December 2019 the Council extended its declaration of a homeless shelter crisis to January 2022.

D. The nine-county Bay Area has been losing an annual average of 32,000 unsubsidized affordable homes occupied by low-income households since 2012.

Unsubsidized affordable housing is the most common form of low-income housing, and at the same time is the most at risk of loss through rent increases, evictions, condo conversions, demolition and more. And, overall preservation is cost-effective compared to new production, at 50-70% of the cost of new affordable housing production (Enterprise Community Partners).

E. Affordable housing preservation and anti-displacement strategies will help keep low income tenants in their homes and is codified in the Berkeley General Plan Housing Element. Furthermore, production and maintaining affordable housing, at all income levels, is a stated priority of the City Council in its Housing Action Plan.

F. The City Council finds that in the interest of preventing the displacement of lower- income tenants and preserving affordable housing, it is necessary and appropriate to require that the owners of rental properties in the City offer tenants and qualified nonprofit organizations the opportunity to purchase the property before it may be sold on the market to a third-party purchaser.

13.89.030 Definitions.

A. “Dwelling Unit,” “Accessory Dwelling Unit,” “Single Family Dwelling,” and “Group Living Accommodations” are defined in Section 23F.04.010.

B. “Offer for Sale” means an offer to sell a Rental Property that includes all material and commercially reasonable terms.

C. “Qualified Nonprofit” means a nonprofit, which is either exempt from federal

13 3
income tax under 26 U.S.C. § 501(c)(3) or a California cooperative corporation, that has the capacity to acquire, provide, and manage affordable housing for moderate, low, very low, and extremely low income households, and is certified by the City Manager pursuant to Section 13.89.070.A.

D. “Qualified Organization” means either a Tenant Organization or a Qualified Nonprofit.

E. “Owner” means any person, corporation, partnership, limited liability company, trustee, or any other entity, who is the owner of record of a Rental Property. Each Owner shall be jointly and severally responsible for compliance with the requirements of this Chapter.

F. “Rental Property” means any residential property containing one or more Rental Units and located in the City of Berkeley.

G. “Rental Unit” means any Dwelling Unit or Group Living Accommodations sleeping quarters occupied by one or more Tenants in the City of Berkeley.

H. “Sale,” “sell,” or “transfer” is defined in Section 13.89.050.

H.I. “Supportive Partner” means any person or organization certified by the City Manager pursuant to Section 13.89.080.A to provide Tenant counseling and technical support services on first-time homeownership, obtaining financing for the purchase of Real Properties, assisting in the process of closing on property transactions, the formation and governance of legal and collective ownership structures, and supporting Tenants in the exercise of their rights pursuant to this Chapter. Supportive Partners may include but are not limited to Tenant Organizations, Qualified Nonprofits, consultants with expertise in non-profit housing acquisition and formation of cooperative ownership models, attorneys with real estate and contract experience, and real estate agents.

I.J. "Tenant" means any renter, tenant, subtenant, lessee, or sublessee of a Rental Unit, or successor to a renter’s interest, or any group of tenants, subtenants, lessees, or sublessees of any Rental Unit, or any other person entitled to the use or occupancy of such Rental Unit.

J.K. “Tenant Organization” means any legal entity or unincorporated and/or informal association that is authorized to act on behalf of a majority of Tenants of a Rental Property. A Tenant Organization must adopt a Governing Document and Governing Principles and may appoint officers and any other authorized agents specifically designated to execute contracts on its behalf. If only one Tenant of a Rental Property seeks to exercise the right of first offer conferred by Section 13.89.100, subject to the majority consent of any other existing Tenants, the one Tenant may exercise the rights of a Tenant Organization under this Chapter. For purposes of this Paragraph only, any and all lessees of a Dwelling Unit or Group Living Accommodations sleeping quarters are collectively considered to be one Tenant, and such lessees of a Group Living Accommodation or Dwelling Unit must consent to representation by the Tenant

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Organization, as furthered defined in Administrative Regulations.

K.L. “Third-Party Purchaser” means any prospective purchaser of a Rental Property other than a Qualified Organization as defined in Paragraph D.

L.M. “The City” shall mean the City of Berkeley, including any departments within the City that are assigned any responsibilities under this Chapter.

M.N. “City Manager” means the City Manager or their designee.

N.O. “Governing Document” means a constitution, articles, bylaws, operating agreement, or other writings that governs the purpose and operation of a Tenant Organization and the rights and obligations of its members, which shall include provisions on the Tenant Organization’s decision-making processes and appointing officers and other authorized agents to act on its behalf.

O.P. “Governing Principles” means the governance and management principles stated in a Tenant Organization’s Governing Documents.

P.Q. “Majority” means an affirmative vote of more than fifty percent (50%) required for decision-making under this Chapter.

13.89.040 Applicability.

This Chapter shall apply to the sale or transfer of all Rental Property in the City of Berkeley, unless otherwise exempted herein.

13.89.050 Sale Defined.

A. “Sale,” “sell,” or “transfer” is defined as the following:

1. The transfer, in exchange for money or any other thing of economic value, of a present interest in the Rental Property, including beneficial use, where the value of the present interest is the fee interest in the Rental Property, or substantially equal to the value of that fee interest.

2. Any change of ownership of real property as defined in Revenue & Taxation Code § 64(c).

3. Multiple transfers of minority interests in the Rental Property which, in effect, result in a transfer of the Rental Property.

13.89.060 Exemptions.

A. Residential Property Types Exempted. The following Rental Properties are not subject to the requirements of this Chapter.

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1. Any Rental Property comprised entirely of owner-occupied Rental Units, including any owner-occupied Single-Family Dwelling.

2. Any Rental Property having no more than one Single Family Dwelling (inclusive of an Accessory Dwelling Unit or a junior Accessory Dwelling Unit) and such Rental Property is the Owners only Rental Property in the City of Berkeley. For purposes of this subparagraph only, the “Owner” of such Rental Property must not be any of the following set forth under California Civil Code Section 1947.12(d)(5)(A)(i)-(iii) (“AB 1482”):
a real estate investment trust, as defined in Section 856 of the Internal Revenue Code; a corporation; or a limited liability company in which at least one member is a corporation.

2.3. Any Rental Property having no more than one Single Family Dwelling where the Owner occupies (or intends to reoccupy) as their principal residence either the Single Family Dwelling or an Accessory Dwelling Unit (inclusive of any junior Accessory Dwelling Unit) on the same parcel as the Single Family Dwelling.

4. Any Rental Property having no more than one Duplex where the Owner occupies (or intends to reoccupy) as their principal residence one of the units and such Rental Property is the Owners only Rental Property in the City of Berkeley.

3.5. Rental Properties owned by the local, state, or federal government.

4.6. Rental Properties owned by and operated as a hospital, convent, monastery, extended care facility, convalescent home, or dormitories owned by educational institutions.

5.7. Group Living Accommodations subject to monitoring by a Monitoring Organization, as defined in Section 13.42.020.E.

6.8. Properties owned by housing cooperatives, if the cooperative entity is owned and controlled by a majority of residents. This definition includes non-profit mutual housing associations and limited equity housing cooperatives.

7.9. Properties defined as “assisted housing developments” pursuant to California Government Code Section 65863.10(a)(3) so long as the provisions of California Government Code Section 65863.10, 65863.11, and 65863.13 apply.

B. Transfers Exempted. The following transfers of Rental Properties are not subject to the requirements of this Chapter.

1. An inter vivos transfer, whether or not for consideration, between spouses, domestic partners, parents and children, siblings, and/or grandparents and grandchildren.

2. A transfer for consideration by a decedent’s estate if the consideration arising from the transfer will pass from the decedent’s estate to, or solely for the benefit of, charity.

3. A transfer of legal title or an interest in an entity holding legal title to a Rental

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Property pursuant to a bona fide deed of trust or mortgage, and thereafter any transfer by foreclosure sale or deed in lieu of foreclosure pursuant to a bona fide deed of trust or mortgage. This exemption does not supersede any rights to purchase afforded to Tenants or Qualified Nonprofits under the California Civil Code Sections 2924f-h, 2924m-n, or 2929.3.

4. A transfer of bare legal title into or out of a revocable trust, without actual consideration for the transfer, where one or more transferors is a current beneficiary of the trust.

5. A transfer by devise, descent, or operation of the law upon the death of a natural person.

6. A transfer pursuant to court order or court-approved settlement.

7. Any transfer to a public agency, including but not limited to a transfer by eminent domain or under threat of eminent domain.

8. A transfer of a fractional interest in a Rental Property that is less than 50% of an undivided interest in the Rental Property, unless Section 13.89.050.A30 applies.

9. Any transfer in which the transferee receives a low-income housing credit under 28 U.S.C. § 42.

10. A transfer of a Rental Property that is the Owner’s sole Rental Property and has no more than five Rental Units made for the purpose of paying for imminently necessary health care expenses of an Owner of the Rental Property, or any such health care expenses incurred by a spouse, domestic partner, or child of any Owner (“Eligible Persons”), where requiring the Owner to comply with the requirements of this Chapter would result in medical financial hardship to an Eligible Person . For purposes of this subparagraph only, “Owner” shall be limited to a natural person having an undivided interest in the Rental Property of at least 50%. The process and requirements for determining eligibility of this exemption shall be defined in Administrative Regulations implementing this Chapter.

C. Exemption Procedures and Burden of Proof.

1. Burden of Proof. The burden of proof to establish that a property or transfer is exempt from the requirements of this Chapter shall be on the Owner.

2. The Owner of a property exempt from the requirements of this chapter or claiming an exemption pursuant to this Section must provide written notice to all Tenants of the Rental Property at time of listing or marketing property for sale. The notice shall inform the Tenants of the Owners intent to sell the Rental Property and must state whether the property is exempt from the requirements of this Chapter and specify the specific exemption claimed.

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3. An Owner who believes that they should be granted an exemption under this Section shall comply with procedures that the City shall create for claiming an exemption in its Administrative Regulations.

13.89.070 Qualified Nonprofits.

A. Certification, Term, and Renewal. The City Manager shall certify Qualified Nonprofits that meet the requirements of this Chapter. The Qualified Nonprofit shall be a nonprofit organization exempt from federal income tax under 26 U.S.C. § 501(c)(3) or a California cooperative corporation that is committed to furthering permanent affordability, democratic residential control, and tenant ownership, as further defined in Administrative Regulations, and shall have demonstrated the capacity (including, but not limited to, the legal and financial capacity) to effectively acquire and manage residential real property and to provide affordable housing for very low and/or low-income households. The City Manager may prescribe additional requirements necessary to effectuate the purpose of this Chapter by Administrative Regulation. A nonprofit organization’s certification as a Qualified Nonprofit shall be valid for four years. The City Manager shall solicit new applications for Qualified Nonprofit status at least once each calendar year, at which time existing Qualified Nonprofits shall be eligible to apply for renewed certification. A list of Qualifying Nonprofits shall be published on the City’s website and made available by the City Manager upon request.

B. Conflicts of Interest; Disqualification of Qualified Nonprofits. A Qualifying Nonprofit may not act in a manner that is adverse to the interests of Tenants occupying a Rental Property that is subject to this Chapter. A Qualifying Nonprofit may not act as a Supportive Partner if it exercises its right of first offer under Section 13.89.100 or right of first refusal under Section 13.89.110. The City Manager shall promptly investigate any complaint alleging that a Qualified Nonprofit has a conflict of interest or has failed to comply with the requirements of this Chapter. If after providing the Qualified Nonprofit with notice and opportunity to be heard, the City Manager determines that an organization listed as a Qualified Nonprofit has a conflict of interest or has failed to comply with the requirements of this Chapter, the City Manager may limit, suspend, or revoke that organization’s certification as a Qualified Nonprofit.

C. A Qualified Nonprofit is conferred a right of first offer and right of first refusal as a Qualified Organization under this Chapter only if a Tenant Organization qualified to act on behalf of Tenants of a Rental Property (1) assigns in writing the Tenants’ rights under this Chapter to the Qualified Nonprofit within the Notice Period;(2) executes a written waiver of the Tenants’ rights under this Chapter within the Notice Period; or (3) no Tenant submits a statement of interest pursuant to Section 13.89.090.C. Subsequently, Qualified Nonprofits shall have the same amount of time conferred to Tenants to perform under this Chapter, except that Qualified Nonprofits shall only have the remaining time conferred to Tenants to perform within the Notice Period, and any extensions thereof, or a minimum of 5 days, whichever is greater. If no Tenant Organization has been formed to act on behalf of Tenants of a Rental Property, an assignment or written waiver of rights pursuant to this Paragraph shall be valid if signed by the majority of Tenants.

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13.89.080 Supportive Partners.

A. Certification of Supportive Partners. The City Manager shall establish criteria for the identification and selection of persons or organizations who may serve as Supportive Partners under this Chapter. Supportive Partners shall be selected based on their expertise and ability to counsel Tenants on first-time homeownership, obtaining financing for the purchase of Rental Properties, and the formation and governance of collective ownership structures, and to otherwise provide support for Tenants who seek to exercise their rights under this Chapter. Supportive Partners may include but are not limited to Tenant Organizations, Qualified Nonprofits, consultants with expertise in non-profit housing acquisition and formation of cooperative ownership models, attorneys with real estate and contract experience, and real estate agents. The certification as a Supportive Partner shall be valid for four years. The City Manager shall solicit new applications for Supportive Partner status at least once each calendar year, at which time existing Supportive Partners shall be eligible to apply for renewed certification. A list of Supportive Partners shall be published on the City’s website and made available by the City Manager upon request.

B. Requirement to Select Supportive Partner. A Tenant Organization seeking to exercise a right of first offer under Section 13.89.100 or right of first refusal under Section

13.89.110 must select a Supportive Partner and disclose the Supportive Partner to the City and Owner of the Rental Property within the time set forth in the Notice Period and any extensions thereof. The requirement to select a Supportive Partner shall not apply if there are no certified Supportive Partners on the list maintained by the City Manager pursuant to Paragraph A.

C. Conflicts of Interest; Disqualification of Supportive Partners. A Supportive Partner may not act in a manner that is adverse to the interests of Tenants occupying a Rental Property that is subject to this Chapter. The City Manager shall promptly investigate any complaint alleging that a Supportive Partner has a conflict of interest or has failed to comply with the requirements of this Chapter. If after providing the Supportive Partner with notice and opportunity to be heard, the City Manager determines that a Supportive Partner has a conflict of interest or has failed to comply with the requirements of this Chapter, the City Manager may limit, suspend, or revoke that organization’s certification as a Supportive Partner.

13.89.090 Notice of Intent to Sell; Statement of Interest.

A. Notice of Intent to Sell. An Owner of a Rental Property shall provide all Tenants (if any) notice of their intent to sell prior to listing or otherwise marketing a Rental Property for sale (“Notice of Intent to Sell”). The Notice of Intent to Sell shall be provided at least 45 days before marketing a Rental Property with three or more Rental Units, or at least 20 days before marketing a Rental Property with two or fewer Rental Units (“Notice Period”). The Notice of Intent to Sell shall be sent to each Tenant address via certified mail and posted at conspicuous locations at the Rental Property and shall include the

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following:

1. A statement that the Owner intends to sell the Rental Property.

2. A statement describing the rights of Tenants under this Chapter and stating the deadlines for exercising those rights.

3. A list of units by address and the rent due for each unit, if occupied, and any available contact information for each occupant.

4. An itemized list of annual income and expenses for each of the two preceding calendar years, including but not limited to rent and other income collected and costs of management, insurance, utilities, and maintenance.

5. Instructions for submitting a Statement of Interest pursuant to Paragraph C.

B. Notice to Qualified Nonprofits. On the same date as notice is provided to any Tenants pursuant to Paragraph A, the Owner shall provide a copy of the Notice of Intent to Sell the Rental Property via email to each Qualified Nonprofit certified by the City Manager. The City Manager shall maintain a list of email addresses for distribution of the Notice of Intent to Sell and shall make that list available on the City’s website and upon request.

C. Statement of Interest. Prior to the expiration of the Notice Period set forth in Paragraph A, the majority of Tenants may deliver a statement of interest to the Owner of the Rental Property (“Statement of Interest”), unless the Tenants execute a written waiver of rights or assign rights to a Qualified Nonprofit pursuant to Section 13.89.060.C. The Statement of Interest shall notify the Owner of the Tenants’ or Qualified Nonprofit’s interest in exercising their rights under this Chapter. In the event that the majority of Tenants submit a Statement of Interest in response to a Notice of Intent to Sell, the right of first offer conferred by Section 13.89.090 may be exercised solely by a Tenant Organization that satisfies the requirements of Section 13.89.030.J.; provided, however, nothing in this Paragraph shall prohibit a Tenant Organization from assigning the Tenants’ right of first offer or right of first refusal to a Qualified Nonprofit prior to the expiration of the Notice Period.

D. Formation of Tenant Organization; Selection of Supportive Partner. If the majority of Tenants submit a Statement of Interest, the Tenants of the Rental Property must identify or form a Tenant Organization as defined in Section 13.89.030.K and select a Supportive Partner, subject to Section 13.89.080.B. If there is only one Tenant of a Rental Property who seeks to exercise the right of first offer conferred by Section 13.89.100, subject to the majority consent of any other existing Tenants, the one Tenant may exercise the rights of a Tenant Organization under this Chapter but shall not be exempt from the requirement to select a Supportive Partner. A Tenant Organization identified or formed pursuant to this Paragraph shall be entitled to exercise the rights of a Qualified Organization set forth in Sections 13.89.100 and 13.89.110.

E. Effect of Statement of Interest. Receipt of a timely Statement of Interest shall

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extend the Notice Period for 60 days. For Rental Properties having 10 or more Rental Units, any Tenant or Qualified Nonprofit that submits a valid Statement of Interest shall be granted an additional 30-day extension of the Notice Period upon timely written request. For Rental Properties having 20 or more Rental Units, any Tenant or Qualified Nonprofit that submits a valid Statement of Interest shall be granted a total of two additional 30-day extensions of the Notice Period upon timely written request.

F. Prohibition on Marketing Property to Third-Party Purchasers During Notice Period.

Prior to the expiration of the Notice Period, t he Owner of a Rental Property shall be prohibited from listing or marketing the Rental Property for sale or entering into any agreement for the sale or transfer of the Rental Property to Third-Party Purchasers.

13.89.100 Right of First Offer.

A. Right of First Offer. A Tenant or Qualified Nonprofit that submits a Statement of Interest shall have the right to make an offer to purchase a Rental Property prior to the sale of the Rental Property to a Third-Party Purchaser; provided, however, that in the event that any Tenant submits a Statement of Interest pursuant to Section 13.89.090.C, the right of first offer conferred by this Section may be exercised solely by a Tenant Organization that satisfies the requirements of Section 13.89.030.K unless an assignment or waiver of rights have been executed pursuant to Section 13.89.070.C.

A.B. The Qualified Organization may deliver to the Owner of the Rental Property an offer to purchase the property, together with disclosure of its selected Supportive Partner, at any time prior to the expiration of the Notice Period. The Owner may accept or reject any offer to purchase received from a Qualified Organization.

B.C. Acceptance of Offer of Purchase. Upon acceptance of any offer to purchase a Rental Property made pursuant to Paragraph A, the Owner and Qualified Organization shall make reasonable and good faith efforts to close the transaction. The Qualified Organization shall have at least 30 days to close the transaction for the sale of a property having one Rental Unit; 90 days to close the transaction for the sale of property having two Rental Units; and 120 days to close the transaction for the sale of property having three or more Rental Units. The deadline to close a transaction for the sale of Rental Property having one Rental Unit shall be extended for an additional 60 days from the date of acceptance of the offer if the Qualified Organization provides written documentation that its lender will require a commercial loan for the purchase of the Rental Property. The Qualified Organization shall be entitled to reasonable extensions of the time to close not to exceed 30 days upon demonstrating that it is diligently pursuing financing or diligently pursing the completion of other requirements to close the transaction. Nothing in this Paragraph shall prevent the Owner and the Qualified Organization for agreeing to further extend the deadline to close the transaction.

C.D. Termination of Right of First Offer. Upon (1) rejection of all offers to purchase made within the Notice Period, (2) the expiration of the Notice Period, or (3) the failure to close the transaction within the time period set forth in Paragraph B, the Owner may list and market for sale the Rental Property and may solicit and conditionally accept offers from a

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Third-Party Purchaser, subject to the requirements of Section 13.89.110. The requirements of Section 13.89.110 shall not apply if no Qualified Organization submits an offer to purchase the Rental Property under this Section.

13.89.110 Right of First Refusal.

A. Disclosure of Offer of Sale. The Owner shall disclose any Offer of Sale received from a Third-Party Purchaser to any Qualified Organization that exercised a valid right of first offer under Section 13.89.100, and shall provide said Qualified Organization a right of first refusal pursuant to the requirements of this Chapter. The Owner shall disclose to each Qualified Organization eligible to exercise a right of first refusal under this Section all material terms of any Offer of Sale of the Rental Property, together with all commercially reasonable disclosures, in substantially the same form and having substantially the same content as would be provided to any prospective Third-Party Purchaser. Any written offer received by the Owner shall be provided to said Qualified Organizations; provided, however, that any confidential information not necessary to comply with the requirements of this Paragraph may be redacted from such offers.

B. Right of First Refusal. Any Qualified Organization that exercised a valid right of first offer under Section 13.89.100 may exercise a right of first refusal and accept the Offer for Sale of the Rental Property within the time period set forth in Paragraph C. To exercise its right of first refusal, the Qualified Organization must accept all material terms of the Offer for Sale; provided, however, the financing of the Qualified Organization’s purchase shall not be considered a material term of the Offer for Sale so long as it does not affect the net value of the Sale to the Owner.

C. Time to Exercise Right of First Refusal. The Owner shall provide any Qualified Organization eligible to exercise a right of first refusal under this Section at least 10 days to accept the Offer of Sale of Rental Property having no more than two Rental Units, or at least 30 days to accept the Offer of Sale of Rental Property having three or more Rental Units. The acceptance of an Offer of Sale by any Qualified Nonprofit extinguishes any right of first refusal of other eligible Qualified Nonprofits.

D. Time to Close. Upon acceptance of the Offer of Sale, the Qualified Organization shall have at least 30 days to close the transaction for the sale of a property having one Rental Unit; 90 days to close the transaction for the sale of property having two Rental Units; and 120 days to close the transaction for the sale of property having three or more Rental Units. The Qualified Organization shall be entitled to reasonable extensions of the time to close not to exceed 30 days upon demonstrating that it is diligently pursuing financing or completing other requirements to close the transaction.

E. Rejection of Offer or Failure to Close. If each Qualified Organization entitled to receive an Offer of Sale rejects or fails to accept such offer of sale within the time set forth in Paragraph C or if a Qualified Organization that accepts an Offer for Sale fails to close the transaction within the time set forth in Paragraph D, the Owner may immediately proceed with the sale or transfer of the Rental Property to a Third-Party Purchaser.

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F. Notwithstanding any other provision of this Section, conditional sales agreements between an Owner and a Third-Party Purchaser are permitted so long as the agreement is subject to the contingency that no Qualified Organization exercises a right of first refusal conferred by this Chapter.

13.89.120 Contract Negotiation
A. Bargaining in good faith. The Owner and any Tenant, Tenant Organization, and/or Qualified Organization shall bargain in good faith regarding the terms of any Offer for Sale. Any one of the following constitutes prima facie evidence of bargaining without good faith:

1. The failure of an Owner to offer a Tenant, Tenant Organization, or Qualified Organization a price and other material terms at least as favorable as that offered to a Third-Party Purchaser.

2. Any requirement by an Owner that a Tenant, Tenant Organization, or Qualified Organization waive any right under this Chapter.

3. The intentional failure of an Owner, Tenant, Tenant Organization, or Qualified Organization to comply with the provisions of this Chapter.

B. Termination of rights. The intentional failure of any Tenant, Tenant Organization, or Qualified Organization to comply with the provisions of this Chapter shall result in the termination of their rights under this Chapter.

13.89.130 Incentive to Accept Offer from Qualified Organization.

A. Transfer Tax Refund. An Owner that accepts an offer to purchase Rental Property from a Qualified Organization submitted pursuant to Section 13.89.100 and transfers title to a Rental Property to said Qualified Organization shall be entitled to reimbursement of any real property transfer tax imposed under Section 7.52.040.A. Said reimbursement shall not include the amount of any voter-approved transfer tax assessed pursuant to Section 7.52.040.B-C.

B. Exempt Properties. An Owner of a Rental Property that is exempt from this Chapter may comply with the requirements of this Section, and shall be entitled to reimbursement of real property transfer tax pursuant to Paragraph A upon sale of the Rental Property to a Qualified Organization.

13.89.140 Confidential Information Protected.

Any information exchanged between an Owner, Tenants, or Qualified Organizations under this Chapter shall be kept confidential to the greatest extent permitted by law. This Section shall not prohibit disclosure of information necessary to effectuate the purpose of this Chapter to any Owner, Tenant, or Qualified Organization, or to the City of Berkeley

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or its agents or contractors, nor shall this Chapter be construed to limit disclosure of information in response to a lawfully issued subpoena or court order.

13.89.150 Prohibited Conduct.

A. The sale or transfer of any Rental Property subject to this Chapter and not exempt pursuant to Section 13.89.060 is prohibited unless the Owner complies with Sections

13.89.100 and 13.89.110.

B. A Tenant or Qualified Organization shall not buy or sell any right afforded to them under this Chapter or sell a waiver of any such right, nor shall any Tenant or Qualified Organization assign or otherwise transfer any such right except as authorized to do so under this Chapter.

C. An Owner shall not (1) coerce a Tenant or Tenant Organization to waive their rights under this Chapter; (2) retaliate against or harass a Tenant seeking to exercise their rights under this Chapter; or (3) engage in conduct intended to prevent a Tenant from exercising their rights under this Chapter.

D. Any agreement to shorten the time periods provided for exercise of any right afforded under this Chapter. Nothing in this Paragraph shall prohibit an agreement to extend the deadlines set forth herein.

13.89.160 Complying Anew with the Right of First Offer.

An Owner shall comply anew with the Right of First Offer if one of the following occur:

A. The Owner decides not to sell the Rental Property after providing the Notice of Intent to Sell, and then proceeds to undertake a Sale again as defined in Section

13.89.050; or the Owner cancels a contract of sale entered into with Tenant or Qualified Organization after escrow has opened.

B. 365 days have elapsed since a Tenant or Qualified Organization cancelled a contract of sale entered into with the Owner after escrow has opened, and the Owner has not sold the Rental Property to a Third-Party Purchaser.

C. 90 days have elapsed from the date of an Owner’s rejection of an offer from a Tenant or Qualified Organization pursuant to Section 13.89.100.B and the Owner has not provided an Offer of Sale to the Tenant or Qualified Organization pursuant to Section

13.89.110.A; however, the Owner may submit a notarized statement to the City to extend this time period if the Owner is still actively seeking to sell the Rental Property to a Third- Party Purchaser.

D. 180 days have elapsed since the expiration of a Notice Period and any extensions thereof and no Tenant or Qualified Organization submitted a Statement of Interest or offer and the Owner has not sold the Rental Property to a Third-Party Purchaser; however, the Owner may submit a notarized statement to the City to extend this time period if the Owner is still actively seeking to sell the Rental Property to a Third-Party Purchaser.

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13.89.170 Financial Assistance.

The City Manager shall develop guidelines for providing financial assistance to allow for the acquisition of Rental Properties pursuant to this Chapter. Financial assistance may be provided to Tenants, Tenant Organizations, or Qualified Nonprofits. Nothing in this provision commits the City Council to providing a specified level of funding for the acquisition of Rental Property under this Chapter.

13.89.180 Price Stabilization; Tenant Protections.

A. Affordability Restriction. Except as otherwise provided herein, any Rental Unit acquired pursuant to this Chapter shall be subject to a recorded affordability restriction that ensures that each Rental Unit acquired is available to very low, low, or moderate income renters or buyers in perpetuity. The City Manager shall set standards for the provisions of affordable units by Administrative Regulation and for the enforcement of the requirements of this Section.

B. Exemptions from Affordability Restriction.

1. Any Rental Property purchased by a Tenant Organization that exercises its rights under this Chapter is exempt from the requirements of Paragraph A unless any Tenant or the Tenant Organization receives financial assistance pursuant to the guidelines established under Section 13.89.170.

2. A limited equity housing cooperative that meet the requirements of Civil Code Sections 817 and 817.1 is exempt from the requirements of Paragraph A.

C. The sale of a Rental Property pursuant to this Chapter shall not impair the rights of any Tenant under Chapter 13.76 or any other applicable state law or local ordinance.

Further, any Tenant who resides in any Rental Unit at the time of the sale of a Rental Property under this Chapter shall not be subject to eviction based on their failure to meet income restrictions or other eligibility requirements imposed by this Section. If the sale of the Rental Property under this Chapter to a Tenant Organization results in the exemption of any Rental Unit from the requirements of Chapter 13.76, the Tenant Organization and any subsequent Owner of the Rental Property shall, unless and to the extent prohibited by state law, limit the increase in rent for any such Rental Unit to 65% of the percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U) in the San Francisco-Oakland-San Jose region as reported and published by the U.S. Department of Labor, Bureau of Labor Statistics, for the twelve month period ending the previous June 30; provided, however, the Owner may further increase the rent for any such Rental Unit to cover the cost or planned cost of a reasonable, pro rata share of capital improvements for common areas and of any other capital improvements that are necessary to bring the property into compliance or maintain compliance with applicable local code requirements affecting health and safety, where such capital improvement costs are properly amortized over the life of the improvement. In no event, however, shall the allowable annual

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adjustment be less than zero (0%) or greater than seven percent (7%).

D. Rental Properties acquired pursuant to this Chapter and converted to condominiums or stock cooperatives (including limited equity housing cooperatives that meet the requirements of Civil Code Sections 817 and 817.1) subject to a recorded affordability restriction under this Section shall be exempt from the requirements of Section 21.28.070 (“Affordable housing mitigation fee”).

13.89.190 Implementation
A. The City Manager shall adopt Administrative Regulations necessary to implement the requirements of this Chapter, and may adopt additional rules and regulations for purposes of administering this Chapter, including but not limited to rules and regulations governing the reporting of information regarding transactions subject to the requirements of this Chapter.

B. This ordinance shall take effect 90 days after the City Manager adopts Administrative Regulations pursuant to Paragraph A.

C. The City Manager shall report annually on the implementation of this Chapter to the City Council or to such City Council Committee as the City Council may designate.

The City Manager’s report shall include the number and types of sales of tenant-occupied properties including whether purchased by a Qualified Organization or Third-Party Purchaser; the number of Qualified Organizations that purchase Real Property pursuant to this Chapter; the number and types of units covered by this Chapter; and other data and information relevant to evaluating the effectiveness of this Chapter in creating and preserving affordable housing for residents in the City of Berkeley and in preventing displacement of City of Berkeley tenants.

C.D. The City Manager or their designee shall provide counseling and technical assistance to Owners regarding the requirements of this Chapter to assist in achieving compliance.

13.89.200 Enforcement
A. Any violation of this Chapter or the Administrative Regulations promulgated under Section 13.89.190.A shall be subject to administrative citation under Chapter 1.28.

B. The City Attorney, any Tenant of a Rental Property subject to this Chapter, or a Qualified Organization eligible to purchase Rental Property under this Chapter may bring a civil action to enforce this Chapter, and shall be entitled to the remedies set forth in this Section to the greatest extent permitted by law.

C. Any violation of the requirements of this Chapter shall be subject to a civil penalty not to exceed $1,000 per day of violation. Each failure to provide the required notice or disclosure under this Chapter shall be considered a separate violation for each Rental Unit on a Rental Property.

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D. A prevailing plaintiff in any action to enforce this Chapter shall be entitled to damages according to proof and reasonable attorneys’ fees and costs. Any court of competent jurisdiction may order that an Owner of Rental Property comply with the requirements of this Chapter.

13.89.210 Severability
If any word, phrase, clause, sentence, subsection, section, or other portion of this Chapter, or any application thereof to any person or circumstance is declared void, unconstitutional, or invalid for any reason by a decision of a court of competent jurisdiction, then such word, phrase, clause, sentence, subsection, section, or other portion, or the prescribed application thereof, shall be severable, and the remaining provisions of this Chapter, and all applications thereof, not having been declared void, unconstitutional or invalid, shall remain in full force and effect. The City Council hereby declares that it would have passed this Chapter, and each section, subsection, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or words had been declared invalid or unconstitutional.

Section 2. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way. Within 15 days of adoption, copies of this Ordinance shall be filed at each branch of the Berkeley Public Library and the title shall be published in a newspaper of general circulation.

27 May 20, 2021

To: Land Use, Housing and Economic Development Policy Committee

From: Mayor Jesse Arreguín

Subject: Proposed Amendments to TOPA

Thank you for all the time and thoughtful discussion over the proposed TOPA ordinance.

Throughout the committee’s deliberations, I have listened carefully to public comments and read every email and letter sent in. I strongly support TOPA and believe it is an important tool to prevent displacement and keep housing affordable. But I also understand there are some concerns around the ordinance, specifically as they relate to small property owners. We can launch an effective TOPA program and address suggestions offered by stakeholders.

I am therefore proposing several amendments related to: 1) the applicability of the ordinance; 2) length of timelines; 3) implementation phase-in; 4) and clarifying language in response to committee members’ questions and concerns.

As today is the last day for the committee to act on this proposal, I am respectfully requesting that the policy committee make a Qualified Positive Recommendation to the full Council incorporating the following amendments. After Committee action I will work with the City Attorney’s office to incorporate language reflecting these amendments:

Exemptions (13.89.050)
• Clarify that any owner-occupied properties exempt under the ordinance must be the “principal residence” of the owner.

• Exempt all Single-Family Homes (SFH) from TOPA except investor-owned SFH properties using a definition based on language in AB 1482 (state rent cap law).

CA Civil Code Section 1947.12 (AB 1482) defines investor-owned properties as

(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
(ii) A corporation.
(iii) A limited liability company in which at least one member is a corporation. • In addition to exempting Single Family Homes and Accessory Dwelling Units where an owner resides in one of the units as their principal residence, also exempt all owner- occupied Duplex properties where one of the units is the owners’ principal residence or that of a family member defined as “Eligible Persons” in Section

13.89.050.B.10.

28 • Give tenants standing to file a complaint of non-compliance with the City if there is evidence that a property should be covered under TOPA and is not entitled to an exemption.

Right of First Refusal (13.89.100)
Shorten the timelines for the Right of First Refusal process as follows:
• Acceptance of offer:
§ 5 business days all properties (currently 10 or 30 days)

• Close of transaction:
§ 45 days (under 5 units) (currently 90 days)
§ 90 days (5 units or more) with one 30-day extension upon demonstrating that it is diligently pursuing financing or completing other requirements to close the transaction, to be further defined in the Administrative Regulations

Clarifying Language
• Include prior definition of “Sale”

• Right of First Offer Reset:
§ Right of First Offer will not reset unless Owner backs out of sale after escrow has opened.
§ If Tenant or QO backs out of sale after escrow has been opened, then Owner will be exempt from complying with TOPA for 12 months.

Implementation Phase-In
• Delay the effective date of the ordinance until July 1, 2023 so that the program can launch fully resourced
This would align decisions on funding implementation with the FY23 budget process and provide sufficient time to fund and implement staffing, acquisition funding, and supportive partners.

• Refer to the FY 2022 Budget process $100,000 for the purpose of hiring a consultant to:
§ Conduct an Equity Study to inform implementation of TOPA § Draft Administrative Regulations
§ Develop the program model
§ Identify staffing and administrative funding needs at time of effective date for successful launch and ongoing administration of the program § Evaluate capacities and costs/benefits of various agencies (COB, Housing Authority, Rent Board, potential not-for-profit partners) to launch and administer the program
§ Identify potential ongoing funding sources to support housing purchases and program administration over at least 5 years
§ Assess other administrative and programmatic needs to support success.

29 Office of the Mayor
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7100 ● TDD: (510) 981-6903 ● Fax: (510) 981-7199 E-Mail: [email protected]

ACTION CALENDAR
March 10, 2020
Revised for Policy Committee
March 18, 2021
Revised for Policy Committee
May 6, 2021
To: Honorable Members of the City Council
From: Mayor Jesse Arreguín
Subject: Tenant Opportunity to Purchase Act, Adding BMC Chapter 13.89

RECOMMENDATION

1. Adopt a first reading of an ordinance adding Berkeley Municipal Code Chapter

13.89, the Tenant Opportunity to Purchase Act (TOPA), that will take effect on final adoption with an implementation start upon completion of Administrative Regulations and funding of related program costs; and

2. Direct the City Manager to take all necessary steps to implement this chapter including, but not limited to:

1. Developing Administrative Regulations;

2. Preparing an implementation strategy;

3. Identifying resources to align databases from Finance, Planning, and the Rent Board to accurately reflect the properties that would be subject to TOPA;

4. Determining necessary staffing for program administration and hearing officers for adjudication and hiring staffing to support the program upon implementation;

5. Timelines for project “roll-out”;

6. Determining appropriate amount of funding needed to support the acquisition of TOPA properties and identify recommending possible funding sources;

7. Quantifying an annual program budget and referring such program costs to the June 20210 Budget process.

30 Tenant Opportunity to Purchase Act (TOPA) ACTION CALENDAR

SUMMARY
TOPA is a policy that empowers tenants to determine the future of their housing when an O rental property owner is ready to sell, by giving tenants the opportunity to collectively purchase the property they live in. It does this by creating legal rights for tenants to purchase or assign rights to an affordable housing developer, and providing technical assistance, education, and financing to help make these purchases possible.

TOPA provides a way to stabilize existing housing for tenants and preserve affordable housing in Berkeley. It also creates pathways for tenants to become first-time homeowners and facilitates democratic residential ownership. TOPA will apply to all rental properties in Berkeley, subject to a number of exemptions:

1. Any Rental Property comprised entirely of owner-occupied Rental Units, including any owner-occupied Single-Family Dwelling

2. Any Accessory Dwelling Unit (inclusive of any junior Accessory Dwelling Unit) located on the same parcel of an owner-occupied Single Family Dwelling or owner-occupied Accessory Dwelling Unit

3. Transfers to family members

4. Transfers by inheritance

1.5. Sale of properties of 4 units or less for the purpose of paying imminently necessary health care expenses of an Owner of the Rental Property, including owner-occupied Single Family/Owner Occupied properties, including those with an Accessory Dwelling Unit (ADU) or other secondary dwelling unit, that do not have a homeowner exemption registered with the County Tax Assessor.

Owners of rental properties that are exempt can receive the benefit of TOPA incentives if they comply voluntarily with TOPA policies and procedures.

The first right to purchase is conferred to tenants, and includes a right of first offer, right of first refusal, and a right for tenants to assign rights to a qualified affordable housing organization. The ability to assign rights benefits tenants who cannot purchase but wish to maintain affordable tenancies. It also benefits affordable housing developers as tenant buy-in is often critical to the successful management of the property. If tenants waive their rights, the list of qualified affordable housing organizations have a second opportunity to purchase the property within shorter timelines. Qualified affordable housing organizations are vetted and must meet criteria such as being committed to permanent affordability and democratic residential control. Assigning rights in this manner also benefits the affordable housing developers, especially community land trusts, as the tenant buy-in is often critical to the successful management of the property.

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The policy is designed to maintain preserve existing affordable housing and create new properties purchased under TOPA as permanently affordable housing for future generations. Any TOPA property that receives City investment would be deed restricted to ensure that the property remains permanently affordable. TOPA properties that are purchased without City investment would also have a deed restricted upper limit for property appreciation. This would result in the accessibility of those properties to serve tenants around 80% AMI.

Multi-tenant buildings that include a mix of TOPA buyers and tenants who wish to continue renting will be required to ensure tenant protections and the enforcement of tenant’s rights. This will prevent any internal displacement caused by the exercising of TOPA rights.

TOPA sales have longer escrow periods in order to provide tenants time to organize, engage technical assistance, form an organization that would qualify for financing, and obtain the necessary financing to close a transaction. In order to incentivize owners to participate in a TOPA sale, owners who sell to tenants or a qualified organization will receive a refund in the amount of since it may potentially take more time, upon close of escrow the City would refund to the seller the City’s portion of the Real Property Transfer Tax (.75%) not including the proportional amount attributed to Measure P.

Recent tTransactions from the previous 12 months, including asking vs. sales price and days on the market, were gathered from the MLS Zillow and provided in Attachment 2.

Moving forward a TOPA policy will require detailed Administrative Regulations and a well-funded infrastructure to administer and enforce the policy. There is also a vital need to provide adequate education, legal and technical assistance to tenants as part of the implementation. As such, there is a requirement for tenants to engage a City approved supportive partner to assist in all aspects of the transaction, including submitting the initial offer. Finally, a more robust and vibrant acquisition fund will be required that can work efficiently with the TOPA ordinance. This funding could be accommodated through the Small Sites Program with potential funding coming from Measure U1 tax receipts, the Housing Trust Fund, and Measure O or through another funding mechanism including grants and future regional subsidy1.

BACKGROUND
Since 2015, Mayor Arreguin and community-based organizations such as the East Bay Community Law Center (EBCLC), Bay Area Community Land Trust, and Northern California Land Trust (NCLT) and tenants’ rights organizations have been researching TOPA’s effectiveness as an anti-displacement strategy in Berkeley, to be paired with a robust Small Sites acquisition program.
1 https://www.google.com/url?q=https://abag.ca.gov/sites/default/files/documents/2021-02/Launching%2520BAHFA- Regional%2520Housing%2520Portfolio_2-24-
21_v6.pdf&sa=D&source=editors&ust=1615589062074000&usg=AOvVaw3u4K_b2vbj9BZ2J41dWjql

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On February 14, 2017, Mayor Arreguin introduced a Council item entitled “Small Sites Acquisition Program and Tenant Opportunity to Purchase Act”2 which among other provisions, referred to the City Manager to:

Review and develop an ordinance modeled after Washington D.C.’s Tenant Opportunity to Purchase Act that offers existing tenants the first right of refusal when property owners place rental property on the sale market, which can be transferred to a qualifying affordable housing provider.

On May 30 and November 28, 2017, the Berkeley City Council adopted the “Affordable Housing Action Plan”3 which included a referral to staff to develop a Tenant Opportunity to Purchase Ordinance (TOPA) modeled after a Washington DC law that was enacted in 1980. On June 11, 2019, City staff returned to Council with an Information item4 that outlined its research and discussed the administration and implementation requirements. This item was referred to the Agenda & Rules Committee for scheduling at a future Council meeting. On September 24, 2019, the information item was included on the Consent Calendar with an action of “received and filed”.

Since the last date of Council action, the Mayor’s Office has been working to develop a TOPA ordinance, which has been drafted by the East Bay Community Law Center (EBCLC), with a diverse group of stakeholders including EBCLC, the Northern California Community Land Trust (NCLT), Bay Area Community Land Trust (BACLT), tenant advocates, legal professionals that specialize in tenant rights, experts familiar with the Washington DC policy and its implementation history, and City of Berkeley staff from the City Attorney’s Office, Planning Department, HHCS, Finance and the Rent Board.

Additionally, in September 2019, City Planning staff and the East Bay Community Law Center applied for a grant from the San Francisco Foundation as part of the Partnership for the Bay’s Future initiative. The Grant purpose was to be used for technical assistance to jurisdictions for projects focused on protection and preservation of affordable housing that result in measurable benefits for tenants. Staff applied for the grant in response to the Berkeley City Council directive, in part, to develop a TOPA policy as part of the City’s Housing Action Plan (HAP), adopted in 2017.

On February 4, 2020 the San Francisco Foundation officially announced the awards, one being the City of Berkeley and the East Bay Community Law Center, for the purposes of developing a Tenant Opportunity to Purchase ordinance and a Local 2 https://www.cityofberkeley.info/.../2017-02-14_Item_18b_Small_Sites_ Acquisition.aspx 3 https://www.cityofberkeley.info/.../2017-11-14_Item_26_Implementation_ Plan_for_Affordable_Housing.aspx 4 https://www.cityofberkeley.info/.../2019-06-11_Item_50_Referral_Response __Tenant_Opportunity_to_Purchase.aspx

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Housing Preference Policy. 5
On March 4, 2020, the TOPA Ordinance was heard before the Land Use Policy Committee. There were well over 50 community comments, both in favor and against the policy as proposed. Policy Committee members provided feedback and questions to the Mayor’s Office and team. It was clear that there was a greater need to seek more feedback from property owners and create more educational materials. Over the last year, the team has been intentional with outreach that included multiple conversations with the Berkeley Property Owners’ Association (BPOA); a lengthy presentation/Q&A session with Berkeley Neighborhoods Council, which reached members of neighborhood associations across the City; and working with Councilmembers to host neighborhood meetings in D3 and D4 (McGee Spaulding Neighbors in Action). BRIDGE Realtors requested and met with the Mayor but delivered no substantive comments to the original submittal. The Mayor, with support from the TOPA team, held a Forum on Zoom that included the capacity for chat and email inbox for the event to address attendees' questions. Importantly, the Ordinance has been rewritten to improve clarity, reflecting the core concepts while revising timelines, based on stakeholder input. Additionally, the feedback from last year’s LUPC meeting and feedback received over the last year has informed more modifications to the policy (such as removing the appraisal provision, limiting disclosures on the front end of the process, defining exemptions and modifying the permanent affordability restrictions (See Attachment 5).

CURRENT SITUATION AND ITS EFFECTS
Housing Affordability and Regional Impacts
At the end of 1998, just before State-mandated vacancy decontrol took effect, the average rent in Berkeley’s 20,000 apartments built before 1980 was $720 a month.

Twenty years later the average rent for these same units is $1,956. If rents had risen only by the rate of inflation, they would average $1,150 a month. In the last five years alone, rents have increased by 50 percent. Similarly, in 2000 the median home price in Berkeley was $380,000, rising to $704,000 in 2013 and by 2019 it had reached $1,300,000.6
Rents in Berkeley and the greater Bay Area continue to rise, with low vacancy rates.7 Future trends are indicating additional loss of naturally occurring affordable housing, according to the County of Alameda Regional Analysis of Impediments to Fair Housing Choice (IFHC). As an example: for decades, a 13-unit complex on Solano Ave. housed a mix of residents — including, teachers, business owners and a 96-year-old woman. 5 https://sff.org/partnership-for-the-bays-future-marks-one-year-anniversary/ 6 Housing for a Diverse, Equitable and Creative Berkeley, July 16, 2019 7 https://www.huduser.gov/portal/publications/pdf/OaklandCA-comp-17.pdf

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The property is rent-controlled and subject to Berkeley’s eviction protections, but the owners invoked the Ellis Act that permits full-building evictions if the property is removed from the rental market altogether (the owners intend to convert the building to a “tenancy-in-common” and sell the units at market rates).8 Anecdotal research, received from local real estate brokers, when the policy was presented in 2020 over the past two months, indicate a desire to increase returns on investment as well as concerns about buyers moving away from the multi-unit property market.9 Due to rent control, tenant protections and eviction laws some owners are looking to sell multi-unit properties, however existing tenant rents impact the sales price.

Some of the methods being utilized to raise rents, and therefore increase the property value for sale, include paying tenants to move out of the building, evictions for cause (when a case can be made), owner-move-in evictions, and Condo/Tenants-in-Common conversions.

Economic Factors
The COVID-19 crisis makes the passage of TOPA even more important and timely. As properties become distressed, some rental property owners will exit the rental market.

TOPA could present opportunities for tenants or qualified organizations to purchase and stabilize those buildings, mitigating the potential displacement risk that was borne out in the 2008 recession. Moreover, TOPA builds on the passage of SB 1079, which was passed during the pandemic to give occupants of distressed properties priority in purchasing these dwellings as they enter foreclosure.10 As the Bay Area region experiences increased The Bay Area’s economic growth and a high demand for housing, this growth is causing housing prices to rise that then displaces low-income residents. As seen throughout the IFHC report, low-income residents tend to also be minority residents. Therefore, continued growth of the region could lead to more displacement of minority residents and increased segregation unless certain actions are taken to encourage economic and racial/ethnic integration and access to stable affordable units in a range of sizes. Contributing factors affecting disproportionate housing needs include:
o Lack of private investments in specific neighborhoods o The availability of affordable units in a range of sizes o Displacement of residents due to economic pressures
o Limited supply of affordable housing within neighborhoods o Lack of economic support for low income home ownership 8 https://www.berkeleyside.com/2019/12/10/theyve-been-evicted-from-a-north-berkeley-building-now-they-want-to-buy-it-with-help- from-a-land-trust
9 https://www.fool.com/millionacres/real-estate-market/articles/8-real-estate-market-predictions-2020/ 10 https://calmatters.org/commentary/my-turn/2020/10/the-affordable-housing-crisis-is-about-to-get-worse-heres-a-policy-that-will- help-renters/

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The National Low-Income Housing Coalition (NLIHC) 202018 Out of Reach Study listed the Bay Area region as one of the least affordable areas in the United States. To be able to afford a two-bedroom market rate unit in Alameda County, a household would need to earn $44.7949.23/ per hour overr $93,163102,000 annually (“housing wage”).

Comparatively, the average housing wage for California is $36.962.68/ per hour or $67,97477,000 annually.

Regional Policy 6, as recommended by the IFHC, is to:

Increase homeownership among low- and moderate-income households by allocating funds for homeownership programs that support low- and moderate- income households. This would include down payment assistance, first time home buyer programs, Mortgage Credit Certificate, below market rate (BMR) homeownership programs and financial literacy and homebuyer education classes. There is also a requirement to promote the programs and any other existing programs through marketing efforts.11
National Research on Ownership
While today’s economy is strong and job growth high, there is a growing gap between rates of economic growth and the levels of income. Wages can be growing but not at the same rate as the economy. Many low to middle income people do not have enough money to cover the basic needs due to rising costs – especially in housing. These lower earnings lead to fewer assets and less wealth. For most Americans the greatest source of their wealth is their home, but home ownership is considerably lower than in past decades. Among African Americans, home ownership has decreased to a 60-year low.12
Providing ownership options for tenants is a mechanism to sustain affordability.

According to the Urban Institute’s Opportunity and Ownership Project, creating ownership within existing rental units provides opportunities for low income renters that will keep their housing costs stable over many years. They suggest that, rather than providing housing subsidies at the Federal and State level for new construction, investing in existing housing would provide many more units at an affordable level (new construction – especially in a good economy – is increasingly expensive).13 Further academic analysis from the Joint Center for Housing Studies, Harvard University states: “Public polices attempt to subsidize these barriers to home buying for 11 http://www.acgov.org/cda/hcd/documents/Draft-AI-Combined2019-10-24.pdf 12 http://wbur.org/hereandnow/2020/02/10/job-economy-middle-class 13 https://www.urban.org/sites/default/files/publication/46626/411523-Promoting-Homeownership-among-Low-Income- Households.PDF

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low-income people through tax policies, grants and other strategies. Current policies are, at best, inefficient and inequitable, and, at worst, ineffective. A more systematic approach would adhere to a set of operating principles including achieving scale, focusing on moving renters to ownership, targeting subsidies to underserved populations, creating incentives for repayment, and maximizing efficiency”.14 City of Berkeley Housing Policies and TOPA Opportunity
Housing production in Berkeley has accelerated but there remains a significant unmet need for affordable housing for low-income people. Compared to Berkeley’s 2014-2022 Association of Bay Area Governments’ (”ABAG”) Regional Housing Needs Allocation (RHNA) goals , between January 1, 2014 and December 31, 2019, Berkeley permitted 128% of its above moderate income allocation (+120% AMI), 23% of its moderate income allocation (81-120% AMI), 4% of its low income allocation(51 - 80% AMI), and 21% of its very low income (31 - 50% AMI) and extremely low income allocation (less than 30% AMI).Housing development has accelerated in Berkeley and while new permits issued from January 1, 2017 through December 31, 2018 exceed Regional Housing Needs Allocation (RHNA) requirements for above moderate incomes by 141%, affordable housing development is well below regional goals. The following table shows Berkeley’s progress toward its RHNA goals through December 2018.15 Attachment 5
Building Permit Action Year
Ext Low
<30%
AMI
VLI
31%-50%
AMI
LI
51%-80%
AMI
MOD
81-120%
AMI
BMR
Total
Above
MOD Total
January 1, 2014 – December 31, 2018 0 174 66 0 240 1,975 2,215 RHNA 266 266 442 584 1,558 1,401 2,959
Remaining RHNA Capacity Requirement 266 92 376 584 -574 Percent of Goal Achieved 0% 65% 15% 0% 141%
The current RHNA is for an 8.8-year period, from January 1, 2014 through October 31, 2022.

Progress towards 2014-2022 RHNA: Approved Building Permits January 1, 2014 – December 31, 2018
Table 5 – Status of Regional Housing Needs Allocation - All Housing Types.

14 https://www.jchs.harvard.edu/sites/default/files/hbtl-08.pdf 15 Item_13_Annual_Housing_Pipeline_Report

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ABAG and MTC are in the process of developing Plan Bay Area 2050, the region’s Transportation Plan and Sustainable Communities Strategy, which will identify where growth should be concentrated and how to ensure that the Bay Area is affordable, equitable, sustainable and resilient for the future. The Plan will be aligned with the Regional Housing Needs Allocation (RHNA) which will take into account the number of affordable housing units for which each community is responsible for and the number of units required for each income level. Preservation of existing housing is a policy strategy already proposed in the draft Blueprint. In February 2021, the Association of Bay Area Governments, released updated RHNA requirements to address the needs from 2023 through 2031. The following table shows Berkeley’s allocation requirement for this time period.

Housing affordability is the first objective of the Housing Element of the City of Berkeley General Plan. Policy H-1 - Extremely Low, Very Low, Low, and Moderate-Income Housing sets the goal of increasing housing affordable to residents with lower incomes and outlines a number of actions to achieve this goal, including encouraging incentives for affordable housing development.16
The Berkeley City Council, in the referenced Housing Action Plan (HAP), stated support for Non-profit housing developers and Community Land Trust acquisition of property to stabilize rents through a Small Sites Program. Two such recent transactions, at 2321- 16 https://www.cityofberkeley.info/Planning_and_Development/Home/General_Plan_-_Housing_Element.aspx

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2323 Tenth Street and 1640 Stuart Street, have resulted in maintaining 16 units at below-market rates. This policy also stated consideration for the creation of limited and non-equity cooperatives affiliated with a democratic community land trust. This program was initially funded through Measure U1 tax receipts with an option of also utilizing Housing Trust Fund resources.

Until 1996, Berkeley condominium conversions provided the tenants a first right to purchase their unit, as did policies in Santa Monica whose policy was more far reaching.

TOPA working group members estimate that approximately 42% of all Berkeley residential properties would fall under TOPA. This estimate was based on an analysis of the property type, homeowner exemption and number of units from the 2018/2019 Alameda Property Tax roll. It is not reflective of the total number of units that would benefit from a TOPA Ordinance. (See Attachment 3).

Washington D.C. TOPA
Washington D.C. passed the Tenant Opportunity to Purchase Act (TOPA) in 1980. This policy regulates the conversion of use, sale and transfer of rental housing. Tenants have the first right of refusal to purchase their buildings and also can assign their rights to third parties, such as affordable housing developers. The impact of this policy has been immense with approximately 30% of annual multi-unit sales going through the TOPA process. Since 2002, this policy has helped preserve over 3,500 units of affordable housing, 2,000 of which have been preserved since 2013.17 The growing impact of TOPA is due to massive and sustained increases in DC’s Housing Production Trust Fund, collaborative efforts to identify and harness other funding/financing, as well as sustained support for the community based organizations that help tenants understand and exercise their TOPA rights.

In order to fund the program, Washington DC dedicates at least $10M per year in Housing Trust Fund (HTF) allocations directly to TOPA purchases, and usually much more. DC’s FY2021 budget included $100 million for HPTF, a slight decrease from the previous year due to the budget impacts of the pandemic. TOPA purchases are often financed initially through the city’s Housing Preservation Fund, which leverages at least $10 million of public funds annually with additional private and or philanthropic funds to provide loans.18 and the Housing Production Trust Fund which has $40M for affordable housing preservation.

TOPA has also helped to create many limited equity cooperatives (LECs) in DC, which currently number 4,400 units across 99 buildings.19 The DC Limited Equity Cooperative 17 https://www.dcfpi.org/wp-content/uploads/2013/09/9-24-13-First_Right_Purchase_Paper-Final.pdf 18 https://dhcd.dc.gov/service/housing-preservation-fund 19 https://dhcd.dc.gov/sites/default/files/dc/sites/dhcd/publication/attachments/Greysteel- %20D.C.%20Multifamily%20Market%20Statistics.pdf

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Task Force, formed in 2018, came out with recommendations in October 2019 to increase the number of LEC units in DC by 45% by 2025 (additional 2000 units). TOPA will be a major vehicle to create these additional units. The task force has also identified how to improve/expand existing policy, financing and technical assistance to support the health of existing and future LECs. This work has been further fleshed out by a March 2020 report on LECs by the Coalition for Nonprofit Housing and Economic Development which showed that the median share of DC LEC residents who are people of color is 75%.20
Finally, TOPA has led to the creation of hundreds of tenant associations across Washington, DC. Many of these tenant associations were the main leaders and organizers in creating the DC Tenants Union in 2019.21 The Tenants Union is focused on supporting rent control and other tenant protection policies and plans to build power and solidarity across tenant associations from different parts of the city. (See Attachment 4)
San Francisco COPA22
In April 2019, the San Francisco Board of Supervisors passed, by a unanimous vote, the Community Opportunity to Purchase Act (COPA). COPA is designed to stabilize communities by preventing displacement and preserving affordable housing and applies to the sale or marketing of buildings with three or more legal residential units, or vacant land on which three or more residential units may be developed “by right”.of any non- condo residential building of 3 or more units. It gives qualified non-profit organizations a right of first offer prior to the property going on the market and a right of first refusal when the owner has a bona fide offer from a potential buyer.

Nonprofit buyers have a limited time (25 days) to work with tenants, secure financing and present a formal offer to purchase the building.exercise their rights under COPA and enter into a Purchase-Sale agreement. Nonprofit buyers and their agents in San Francicso have expressed these timeframes are insufficient, even with the additional resource of San Francisco’s Housing Accelerator Fund which streamlines the process.

Recent articles are indicating challenges to the prescribed timeframes.23 While a seller is not required to accept the offer, the qualified nonprofit also has a right of first refusal on any subsequent third-party to match a competing offer. At closing, deed restrictions are placed on the building restricting the building to affordable housing for the life of the building with a mean value of rents not to exceed 80% AMI. 20 https://cnhed.org/wp-content/uploads/2020/10/Creating-and-Sustaining-Limited-Equity-Cooperatives-in-Washington-DC_REV.pdf 21 https://www.streetsensemedia.org/article/dc-residents-launch-a-city-wide-tenant-union-in-hopes-to-foster-solidarity-across-the- district/#.XjSX3i2ZOt8
22 https://sfmohcd.org/community-opportunity-purchase-act-copa 23 https://www.sfchronicle.com/bayarea/article/City-officials-want-landlord-to-delay-sale-of-76-15002958.php

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The building could eventually be transferred to tenant ownership under a Limited Equity Cooperative or other model, as long as permanent affordability deed restrictions are maintained. The ordinance includes incentives, including partial exemption from the City’s transfer tax and the potential for qualified nonprofits to facilitate sellers’ efforts to obtain federal tax benefits.

San Francisco will set aside $40M – 90M in a specific MOHCD fund to support first time home buyers and its Small Sites Program that could also support the COPA ordinance.

This fund provides resources for deposits, down payments and bridge loans until permanent financing is in place.

Oakland TOPA
Inspired by the Moms-for-Housing advocates, on January 30, 2020 at the Oakland City Council’s Rules and Legislation Committee meeting, a TOPA ordinance was introduced and wasis scheduled for a vote in the Community and Economic Development Committee in March 2020. From there it could go to a full City Council vote.24 This vote was scheduled for the week that COVID shelter-in-place went into effect, so the policy never went to committee and was slowed down further by COVID emergency response.

Oakland Mayor Libby Schaaf has already expressed support for the ordinance.

The Oakland ordinance has been developed since 20178 by a group of community land trusts, tenant advocacy organizations, including ACCE (of which Moms 4 Housing is a project), and the East Bay Community Law Center, whose draft ordinance for Berkeley provided a foundation for Oakland’s ordinance. The Oakland ordinance largely mirrors Berkeley’s TOPA this proposal but will also reportedly include a COPA option for non- profits to buy vacant properties.

The political will for TOPA in Oakland was prompted by Moms 4 Housing — a group of homeless women who took over an empty, investor-owned house in West Oakland for two months before they were evicted and arrested. Their actions garnered national attention and symbolize the Bay Area’s housing and homelessness crisis.

Since the eviction of the Moms 4 Housing, the property owner has agreed to negotiate to sell the house to the nonprofit Oakland Community Land Trust. They have also agreed to give the land trust or other nonprofits a chance to buy dozens of other single-family homes it owns in Oakland.

Minneapolis TOPA
In fall 2019, Minneapolis City Council conducted a Study Session, hosting officials and TOPA housing organizers from Washington D.C. to learn more about DC’s TOPA law.

The City then brought on consultants to study other TOPA policies, and make 24 https://www.mercurynews.com/2020/01/30/oakland-councilwoman-to-introduce-moms-4-housing-inspired-ordinance/

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recommendations about a TOPA policy for the Minneapolis context. In January 2021, Coalition for Nonprofit Housing and Economic Development and LISC Twin Cities published their research report, “Opportunity to Purchase Options for the City of Minneapolis.” The City has also discussed tenant organizing support for the policy with Inquilinxs Unidxs por Justicia (United Renters for Justice, which also goes by the abbreviation IX), a tenant organizing group that has already worked with groups of tenants to purchase their buildings in Minneapolis.

Massachusetts State TOPA
In January 2021, a state bill that would enable local jurisdictions to pass opportunity to purchase ordinances successfully passed both houses of the Massachusetts state legislature, but was ultimately vetoed by Governor Charlie Baker (R-MA). As of February 2021, this policy has been redrafted and re-filed in the MA House and Senate.25 A coalition led by the Massachusetts Association of Housing Cooperatives had been working on the policy for over four years, beginning with conversations in both Boston and Somerville. The policy was then introduced as a state enabling act in early 2017 with many local activists championing the policy. The policy did not move forward in its first two-year legislative session, but was reintroduced in the state legislature in 2019 and championed by Boston Mayor Marty Walsh and his Chief of Housing, the Mayor of Somerville and many councilors, then-At-Large City Councilor for Boston Ayanna Pressley (now Representative D-MA 7th District). This time around, the coalition expanded to involve more community land trusts like Boston Neighborhood CLT and Chinatown CLT, Fenway Community Development Corporation and the statewide CDC umbrella, Massachusetts Law Reform Institute and other legal advocates, larger nonprofit developers, and several mayors, which continues to champion the version currently in the legislature.

New York State TOPA
At the end of January 2020, New York State Sen. Zellnor Myrie, who represents Central Brooklyn, announced that he is in the process of drafting new legislation that would give tenants the first right to buy their landlord’s property should it come up for sale. Myrie stated that “Landlords who claim they will be unable to keep their buildings in good repair or cover the cost of capital improvements” would have an opportunity, in the New York rent-regulated market, to “keep tenants in their homes, create a path to ownership and maintain buildings,”
This Tenant Opportunity to Purchase Act is said to be modeled after right-of-first-refusal statutes in Washington D.C., and its drafters have also reached out to Berkeley TOPA for guidance.26
25 https://malegislature.gov/Bills/192/SD1672
26 https://therealdeal.com/2020/01/31/bill-make-landlords-give-tenants-first-shot-to-buy-buildings/

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Financing for TOPA projects
Financing for TOPA projects is expected to be provided from a combination of city subsidies, the private capital of tenants, and loans from community-oriented banks and lending institutions like credit unions, CDFIs, local banks, future public banks and others. In this sense, TOPA effectively leverages both private and public financing in advancing permanent affordability.27
Subsidies
In order to make TOPA effective and responsive to the full scale of anticipated community needs28, the City will need to enlarge the current Small Sites Program (SSP), or create a new fund, to a minimum of $10-15 million dollars per year and reconfigure SSP guidelines to align with TOPA. While TOPA projects can benefit from existing streams of affordable housing funding, the scale of community need far outweighs the existing funding sources. As demonstrated by the case of the D.C. TOPA, it was only with substantial financing added to its Housing Production Trust Fund that the ordinance became an effective way to prevent and fight displacement - DC has an annual $116M for their Housing Production Trust Fund (HPTF), with a minimum of $10M set aside for TOPA projects. However, D.C. typically spends more out of its HPTF on TOPA - in FY2018, DC spent close to $22.5M on TOPA acquisition projects with additional funds for rehab in some instances (449 units over 9 projects). Without similar enhancement of SSP, or another funding source, TOPA will not be able to produce the necessary impactful levels of affordability needed to meet the crisis, particularly for those of very-low, low and moderate income who may not be able to leverage their own private capital to get a loan.

Private Capital of Tenants
Single family home households and tenants of multi-unit buildings with mixed income units would be able to purchase buildings on their own or with smaller amounts of subsidy involved because these tenants will most likely be able to pay a higher debt service coverage ratio in order to obtain a mortgage from an institutional lender to acquire a property. This could allow higher income tenants with private capital to assist lower income tenants with less capital by 27 While financing percentages of each project may vary substantially according to building costs, tenant resources, and subsidy availability a combination of these financing streams is expected to be a part of most if not all TOPA projects. 28 2019 real estate transaction data for Berkeley show that approximately 250 multi-unit buildings (duplexes and up) sold. Assuming similar sales volume and that a similar percentage (32%) of tenant groups exercise their right to purchase as under the D.C. ordinance we anticipate potentially 80 projects annually, with a greater number of smaller unit buildings participating than occur in DC.

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securing a blanket mortgage to purchase the building for mutual benefit. This would also benefit “missing middle” income tenants who may not be able to purchase homes on their own, in the current market, but might have enough private capital saved to contribute to the purchase of their building.

Loans from Institutional Lenders
Many banks are willing to work with re-sale restricted properties such as those created by TOPA, the majority of which are local commercial lenders, credit unions, cooperative banks, and Community Development Finance Institutions (CDFIs).29 However, even mainstream primary lenders have told community partners (NCLT & BACLT) that there is no inherent obstacle to lending to resale restricted properties such as a community land trust (CLT)30 or limited equity housing cooperative (and LEHC) since they are valid forms of California non-profit corporation. In fact, many mainstream primary lenders have provided CLT loans for single family homes.31 Additionally, there is nothing to prevent newly formed tenant organizations from acquiring property collectively as it is not uncommon for lenders to process and begin underwriting loan applications from newly formed corporate entities during the acquisition phase. While the most common form or ownership is an LLC, there have also been many instances of newly created 501(c)3 non-profit corporations like the non-profit public32 or mutual benefit33 corporation, the legal entity that is the basis of the limited equity housing cooperative, which have been successful in acquiring loans.34
An important factor to note is that the loans that would be provided to TOPA tenants are commercial loans, not consumer loans, because the borrower is not a natural person, but rather a corporate entity (even though the owners of the entity will be owner-occupants of the property), which means they are for a shorter term of 10-15 years. The loan approval process for such commercial loans, from lenders willing to loan on such re-sale restricted properties, tends to range from 90 to 120 days depending on the lender & lender type (e.g.

CDFIs tend to take longer). The most limiting factor in this estimate is the ability of the borrowing entity (the tenant group) to timely respond to lender’s underwriting requests. This variable can be dramatically improved and 29 For example Clearinghouse CDFI, Community Bank of the Bay, National Housing Trust, Capital Impact Partners, Heritage Bank (formerly Presidio Bank), and the Local Initiatives Support Corporation (LISC). 30 https://www.lisc.org/media/filer_public/f0/e0/f0e07be0-1ca5-4720-b78c- 3a0d7a0181dd/022519_white_paper_community_land_trusts.pdf 31 http://www.freddiemac.com/singlefamily/land_trust_mortgages_faq.html, https://groundedsolutions.org/tools-for-success/resource- library/mortgage-financing-options
32 http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP&sectionNum=5151. 33https://leginfo.legislature.ca.gov/faces/codes_displayexpandedbranch.xhtml?tocCode=CORP&division=2.&title=1.&part=3.&chapte r=&article=
34 For example: Derby Walker House in Berkeley, California and Columbus United in San Francisco CA.

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streamlined with a robust technical assistance program through the City and Supportive Partners.

The most important considerations for an institutional lender in underwriting a loan for a tenant organized entity (including LEHCs35) will be:

Repayment of the Loan: First and foremost, the lender will look at the fair market value of the underlying property (that there is adequate loan to value ratio); and secondly, they look at net operating income of the property, and that there is adequate debt service coverage ratio. In other words, the primary underwriting is of the property itself, similar to how a lender would look at a residential rental property.

Viability & Validity of the Borrowing Entity: As stated above, the lender can start the loan review and underwriting process while the entity is still being formed. However, they will require that the Articles of Incorporation have been filed to start the process. A condition of loan closing will be that the entity is duly formed (i.e. that the Secretary of State has approved the Articles, typically a 30-day process; and that all other governing docs, such as by-laws, have been finalized). This condition being met will also be necessary for the entity to properly take title.

Stability of Property/Asset Management: This is determined by the capacity of the tenants to manage and maintain the property, fill vacancies, properly budget income & expenses for the property. In self- managed properties, banks will look to the experience of the individuals, their internal property management plan, and any partnerships/alliances with outside property management firms or organizations. A second option is for the tenant organization to hire a professional property management firm, which can be an expedient way to secureget loan approval and get through the acquisition process, while a tenant group develops the skills and leadership necessary to self-manage in the future.

Credit enhancements, supporting partners and other backstop mechanisms: Many existing resident initiated purchases that were structured in models such as LEHC’s and limited equity condominiums overcame underwriting challenges through backstop mechanisms such as a Community Land Trust, other organizational partner and/or municipality providing a credit enhancement such as a loan guarantee or co-signature on the primary mortgage.
35 https://groundedsolutions.org/sites/default/files/2018-11/Limited%20Equity%20Co- ops%20by%20Community%20Land%20Trusts.pdf

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ALTERNATIVE ACTIONS CONSIDERED
No Action
Taking no action could, over time, further reduce naturally occurring affordable housing.

It would also take away an opportunity for lower income tenants to participate in the ownership of their residence and increase their personal wealth – the historic driver of lower to middle class wealth creation.36
No Action would direct Housing Trust Fund, Measure U1 and other assets primarily to the construction of new affordable housing projects that can cost up to 4 times more than the conversion of existing property to permanent affordable housing. It would also require no investment of other City General Fund/Other Resources in administrative implementation and oversight. It could also lead to further speculation on rental properties by investors and corporations (in light of the pandemic and a possible recession). This, in turn, could fuel gentrification and displacement of low-income communities of color as it did after the 2008-2010 recession.37 Support the Repeal of Costa Hawkins
For over twenty years, the Costa-Hawkins Rental Housing Act (California Civil Code Sections 1954.50-1954.535) has impacted California renters and the affordability of housing. A statewide law backed by the real estate industry that passed in 1995, Costa- Hawkins ties the hands of cities when it comes to protecting tenants and stabilizing rents:
 Cities can’t pass vacancy control; if a tenant leaves or is forced out of a rent- controlled unit, a landlord can raise the rent to whatever the market will bear upon new tenancy;
 Cities can’t extend rent control to any rented condominiums, single-family homes, and any new housing built after 1995.

Since Costa-Hawkins passed, tenants have paid ever increasing rents and been forced from their communities or into homelessness due to high housing costs. Additionally, since the Great Recession, roughly tens of thousands of single-family home rentals have been purchased by investors all across the state and nationwide.

On October 27, 2015, the Berkeley City Council unanimously adopted a resolution calling on the Governor and State Legislature to repeal the Costa-Hawkins Rental Housing Act.38
36 https://www.cato.org/publications/policy-analysis/exploring-wealth-inequality#poverty-matters-not-inequality 37 https://nextcity.org/daily/entry/2008-was-disaster-heres-how-california-should-respond-save-affordable-homes 38 https://ci.berkeley.ca.us/.../2015-10-27_Item_16_Urging_the_State_ Legislature.aspx

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Costa-Hawkins was also a key part of a 2009 court decision, Palmer v. the City of Los Angeles, that found that the imposition of local inclusionary housing requirements for rental housing was in conflict with Costa-Hawkins. In 2017, former Governor Jerry Brown signed AB 1505 to restore the ability for California cities to require developers include affordable units in new rental projects. Additionally, in 2019 the State passed historic legislation, AB 1482, which implemented a cap on rents for non-controlled units of 5% plus CPI, and just cause for eviction statewide. These protections will apply to most housing units not currently deed restricted or controlled, including those exempt from rent control under Costa-Hawkins.

There has been movement among tenant rights advocates to repeal Costa Hawkins to give cities the option to expand and strengthen rent control policies. However, California voters rejected reform in recent years – throughThe latest effort is a statewide ballot measure similar to Proposition 10, which California voters rejected in 2018 and Proposition 21 in 2020. Should this new measure succeed, cities would still need to go through the process of passing new legislation before the repeal would have any effect.39
While new any future statewide rent control legislation might provide some relief to tenants, it is still unknown as to what properties would be included in the legislation, and what level of rent increases would be allowed. It Any future rent stabilization legislation would not give tenants an option to participate in the ownership of their properties nor would there be deeded restrictions to provide rent stabilization for years into the future.

Rely on Regional Policy
The current need for deed restricted affordable units in Alameda County is 52,59151,732 according to California Housing Partnership and cooborated in the recent RHNA allocation.40 Much work is being done on the regional level to address this crisis.

In January 2019, the Metropolitan Transportation Commission (MTC) released the CASA Compact: A 15-Year Emergency Policy Package to Confront the Housing Crisis in the San Francisco Bay Area.41 This report was the product of over two years of stakeholder meetings with elected officials, builders, affordable housing developers and other housing professionals to study the root causes and develop solutions to the region’s housing crisis. The CASA Compact provides a roadmap for regional action on housing affordability. It recommends a series of policies and programs to Produce, Preserve and Protect housing and renters in the Bay Area (known as “the 3P’s” framework). Preservation of existing naturally occurring affordable housing as a key strategy and the plan recommended a variety of regional funding sources to help 39 https://la.curbed.com/2018/1/12/16883276/rent-control-california-costa-hawkins-explained 40 https://1p08d91kd0c03rlxhmhtydpr-wpengine.netdna-ssl.com/wp-content/uploads/2019/05/Alameda-HNR-2019-Final.pdf 41 https://mtc.ca.gov/sites/default/files/CASA_Compact.pdf

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acquire and rehabilitate existing housing to preserve affordability. One bill that come out of the CASA process, AB1487 (2019, Chiu), established the Bay Area Housing Finance Agency (BAHFA), a shared initiative of The This year, the Association of Bay Area Governments (ABAG) and MTC, which offers financing and policy support across the “3Ps”.42 ABAG and MTC are considering the placement of a regional housing finance measure on a future the November 2020 ballot.

In addition, ABAG and MTC are currently developing Plan Bay Area 2050, the region’s Transportation Plan and Sustainable Communities Strategy, which will identify where growth should be concentrated and how to ensure that the Bay Area is affordable, equitable, sustainable and resilient for the future. The Plan will be aligned with the Regional Housing Needs Allocation (RHNA) which will take into account the number of affordable housing units for which each community is responsible for and the number of units required for each income level. Preservation of existing housing is a policy strategy already proposed in the draft Blueprint.

Alameda County Measure A1, the county affordable housing bond approved by voters in 2016, has provided new resources to create new affordable units. Approximately 1,000 new units are in some stage of development. The bond could yield approximately 3,500 affordable units countywide.

While this work is promising, it has a long horizon and the need to maintaining existing affordable housing units is immediate.
42 https://mtc.ca.gov/about-mtc/what-mtc/bay-area-housing-finance-authority-bahfa

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Investor Only TOPA Application
An “investor only” approach would craft a TOPA ordinance that would apply to owners with a 50% or greater ownership position in 3 or more rental units within the City of Berkeley.

There is great difficulty in identifying what properties would fall under this approach.

Many investors create Limited Liability Companies (LLCs) for legal protection. Without review of the underlying documents, the City would not know the make-up of ownership and whether one or more owners own greater than 50% in each individual property in an LLC or LLCs. There are also many properties that are owned in Trust. The beneficiaries of these trusts could own different percentages of each property and in this situation trust documents would need to be obtained and analyzed for each property owned. While it might be possible to create a database that would identify all rented properties in Berkeley and the ownership entities, the ownership participation and owner names associated with properties could be impossible and could change from property to property.

This approach would require significant resources for enforcement, for a City agency to determine who has a 50% or more ownership interest in every rental property, and to count up the number of rental units owned by each owner to determine which properties TOPA applies to. This could cause confusion by tenants and owners as to the basic question of whether TOPA applies to a given property and could undermine TOPA’s effectiveness and usefulness overall.

When analyzing the number of properties that would fall under an Investor Only TOPA, recent property tax rolls were reviewed and sorted by ownership name/entity. The applicability standard with this approach would yield approximately 1/3 the potential properties that would fall under a TOPA ordinance. (See Attachment 2) San Francisco COPA Model
The San Francisco COPA model would provide a first right to purchase to nonprofit qualified organizations. Tenants do not have a say in the nonprofit provider that will own their building and there are no pathways for tenant ownership or democratic control by the tenants once the property changed hands. SF COPA does not provide the facilitated resident ownership models as does the Berkeley TOPA Ordinance.

Timeframes to respond to exercise the COPA are short and have resulted in lost opportunities.43 Incentives that are available to sellers that participate in the SF COPA have been used as a model for the TOPA Ordinance in Berkeley. 43 SF Chronicle, City Officials Want Landlord to Delay Sale

49 Tenant Opportunity to Purchase Act (TOPA) ACTION CALENDAR

SF COPA does have some valuable elements which have been incorporated into the TOPA ordinance in Berkeley, such as a right of first offer and accompanying incentives to sellers who accept the initial offer, as well as a vetting process for qualified affordable housing organizations who can purchase.

The SF COPA makes more sense given the rental housing stock in San Francisco is generally larger buildings. Utilizing a SF COPA Model for Berkeley would result in 50% fewer TOPA opportunities than the Investor Only TOPA application.

CONSULTATION/OUTREACH OVERVIEW AND RESULTS
City Staff Research
As part of the 2017 referral to the City Manager to create a TOPA policy, City staff in the Health, Housing and Community Services Department (HHCS) conducted research and interviews with a variety of stakeholders about TOPA policy and implementation including:
 Apartment and Office Building Association of Metropolitan Washington  City of Los Angeles, Office of the Chief Legislative Analyst  City of San Francisco, Office of Supervisor Sandra Lee Fewer  DC Association of Realtors
 East Bay Community Law Center
 Housing Counseling Services (City-funded technical assistance provider)  Latino Economic Development Corporation (City-funded technical assistance provider)
 Washington, DC Department of Housing and Community Development, Rental and Sales Division
The research that staff presented at the Council meeting informed the development of this ordinance.

Tenant Outreach and Focus Groups
In addition to a number of TOPA workshops conducted for Berkeley community members over the years, EBCLC designed and conducted tenant-centered focus groups in 2019 for the purpose of eliciting feedback on key provisions of the TOPA Ordinance to inform policy proposals. EBCLC identified key questions, had a purposeful recruitment strategy during which they reached out to a number of tenant organizations to gauge interest in participating, and prepared participants via orientations beforehand to provide background on TOPA and answer any questions. Two focus groups were held with a total of nine participants, and there was a post-focus group survey with additional questions.

50 Tenant Opportunity to Purchase Act (TOPA) ACTION CALENDAR

With the exception of one homeowner participant, all focus group participants were Berkeley tenants and included three Section 8 voucher holders and almost all were low- income, with varying levels including 80% of AMI, 50% of AMI, and 30% of AMI and below. Participants lived in property types ranging from multi-family to single family, an ADU and senior housing. Out of the four people of color, two identified as Latino/Hispanic, one as Black/African American, and one as Asian/Pacific Islander. An even spread of ages from 25 to 60+ years of age were represented with five participants identifying as female, three as male, and one as non-binary. All participants had some form of high school education, six having at least a bachelor’s degree.

Tenants were engaged through presentations, simulations, and written feedback on two core provisions of TOPA: timelines and permanent affordability restrictions. The decision points for the timelines included eliciting feedback on the amount of time it would take to submit a statement of interest and submit an offer. To perform these milestones, tenants were advised that they would need to organize a tenant meeting, gather financial information, and decide on ownership type. The results showed that tenants needed more time across all property types. Considerations for timelines that were raised during focus groups included the time necessary for tenants to build consensus, gather financial information, receive guidance on options of assigning rights vs. purchasing, and learning about first-time homeownership, including a cost-benefit analysis.

Participants identified the following supportive service needs: City-sponsored workshops, financial assistance in the form of subsidy and financial advising, centralized forms and documents regarding a clear articulation of TOPA rights and process, legal assistance, and mediation services especially for multi-family homes.

Overall, tenants were excited about the prospect of being able to purchase or assign their rights to an affordable housing organization. However, tenants would like to ensure that non-profits are held to a high standard of care.

Permanent affordability requirements for all TOPA projects were presented, as well as the major trade-offs of equity building and future affordability. Participants were asked for their impressions on the fairness of permanent affordability in exchange for the bundle of rights that TOPA provides to tenants. Overall, there was a strong sense from participants that they would want to use the TOPA rights to buy the property they live in primarily for the purpose of staying there, and that keeping the property affordability affordable for future generations was more important than individual profit gain or reaping a high appreciation on the property. All of the participants agreed that permanent affordability is a critical component of TOPA. needs to be a part of any TOPA transaction.

General feedback from the focus groups demonstrated that there is support for a TOPA policy, although it is contingent on resources such as financial and technical assistance.

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There is a strong sense among low-income tenants that technical and financial assistance are necessary for them to exercise their TOPA rights.

The focus groups, despite the small sample size, provided useful feedback to inform the policy. Nonetheless, EBCLC, NCLT, and BACLT, with the support of the Partnership for the Bay’s Future Challenge Grant Fellow, intend to continued reaching out over the last year to more residents and groups, especially those representing low-income people of color and particularly groups most impacted by the displacement crisis, to do outreach and solicit feedback as necessary(see Attachment 5). As described in Attachment 5, nuanced conversations in this ongoing outreach continued to shape policy provisions, including modifications made to permanent affordability provisions to balance the goals of creating more permanently affordable housing, and opening up benefits of homeownership to those who may have faced barriers.

Lender/financing overview
The TOPA working group has contacted the following banks and lending institutions in recent months: Clearinghouse CDFI, Community Bank of the Bay, National Housing Trust, Capital Impact Partners, Heritage Bank (formerly Presidio Bank), Enterprise Community Partners, Low-Income Investment Fund and the Local Initiatives Support Corporation (LISC). Early conversations with these lenders, as reflected previously, indicate that there is interest in funding TOPA projects so long as they meet the necessary requirements (as detailed in the ‘Financing for TOPA’ section above). Again, in the case of most lenders, they do not offer 30-year consumer loans for these types of projects, but instead offer the more typical 10-15 year term commercial-residential acquisition loans. However, TOPA working group members have been in conversation with several of these lenders who have interest in creating a new/hybrid type of consumer/commercial loan geared towards the owner-occupants of LEHC properties.

This would ideally be a fully amortized 30 year loan, backed by the types of investments which offer the more favorable interest rates typical of consumer (owner-occupied) mortgages. With a solid potential demand for more of these types of loans through TOPA, there could be the momentum needed to persuade lenders to advance this concept.

Research of rental sales professionals
Real estate professionals from four different organizations were interviewed and asked about asking vs. sales price and also length of time the properties were on the market, including escrow time. Additionally, several online resources and articles were reviewed to greater understand buyers of multi-tenant properties and market speculation expectations for 2020. Comments gathered directly from real estate professionals included:

52 Tenant Opportunity to Purchase Act (TOPA) ACTION CALENDAR

 Berkeley/Oakland property is seen as a safe investment because selling prices don’t usually go below asking prices
 Due to rent control, tenant protections and eviction laws investors are looking to move out of property ownership in Berkeley/Oakland
 It is difficult to make improvements on properties due to inability to raise rents and recoup improvement investment costs
 Property desirability depends on tenant occupation, property condition, cash flow, location and zoning (depending on buyers intended use)
 Selling time is longer and price is lower for multi-unit properties with rent- controlled units because it is difficult to make profitable returns on investment  Larger companies that buy multi-unit properties are often looking to redevelop Property sale and time on the market, gathered from Zillowthe MLS, is included in Attachment 2.

During stakeholder outreach, specifically meetings with the Berkeley Property Owners Association (BPOA), several multi-unit real estate brokers provided input to the TOPA team and they provided valuable input on the need for greater clarification and other policy changes. Many of their suggestions have been incorporated in the updated ordinance (see Attachment 1).

In order to ensure that TOPA ordinance development would align with the work of the San Francisco Foundation grant, additional outreach will continue during the City Council Committee process. Feedback from proposed meetings with Berkeley Property Owners Association and BRIDGE Association of Realtors will be included as Attachment 5.

RATIONALE FOR RECOMMENDATION
Taking no action or waiting for significant changes in state rental laws or for more affordable housing production will continue to exacerbate the housing affordability crisis.

The need to provide more options for low income tenants is immediate.

Increasing affordable housing is a policy priority for Berkeley. The most cost-effective way to do so is creating sustained affordability within existing housing stock. The recommendation to apply TOPA to all properties with the exception of Single Family/Owner Occupied Residences including those with ADUs, will at least triple the number of units that could be made available to tenants under TOPA (compared to other options that were considered). This policy would provide ownership opportunity for low income tenants or stabilize rents, keeping their housing cost affordable for generations. Furthermore, maximizing the number of units that could invoke the TOPA policy would justify the City’s investment of resources for purchase, administration and enforcement.

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Legislation of a Tenant Opportunity to Purchase Act (TOPA) has inherent and significant benefits for tenants, including:
 Effective anti-displacement tool by giving tenants options to stay in their home  Creates pathways to homeownership for tenants, thereby helping low-income families of color to have permanency in Berkeley and build equity  Stabilizes rents and keeps rental properties from converting to market-rate  Levels the playing field for tenants and affordable housing developers by providing an opportunity for them to purchase properties, and incentivizing owners to sell to them when the owner is ready
 Provides Tenants empowerment and control of their housing  Preserves existing, naturally occurring affordable units  Creates more affordable housing by converting rental properties to deed-restricted permanently affordable properties
 Provides an opportunity for tenants to stay in their homes without fear of eviction Future regional housing policy will require greater accountability for housing production and more requirements to provide affordable units. Converting existing housing stock to affordable units could help Berkeley meet these required housing goals.

IMPLEMENTATION, ADMINISTRATION AND ENFORCEMENT
Optimally, the goal for the TOPA policy to be in full force and effect would be following funding in the June 2020 Budget process. In order to meet that goal, additional work must be completed:
 Develop Administrative Regulations. The fellow awarded to the Planning Department by the San Francisco Foundation for the Bay’s Challenge Grant will be working with the East Bay Community Law Center in developing the Administrative Regulations and Implementation Plan for the TOPA Ordinance.  Database development. A consultant should be hired to create an accurate database of all rental properties that will support many other existing programs, such as the Rental Housing Safety Program, Measure U1, Below Market Rate units and measuring RHNA goals. This could be accomplished in much the same manner as the database for short term rentals.
 Program administration, oversight and enforcement. Adequate funding to support the administration, oversight and enforcement must be identified, departmental oversight needs to be confirmed and staff hired. The Rent Board is willing to assume the role as the administrating body and will also adjudicate any claims of noncompliance through their hearing officer processes.

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 Funding for Program Costs. Quantifying adequate project costs, that would be included in a budget referral, are a component of the required actions contained herein. The City must be prepared to fully fund the program however, future State and regional housing incentives and regional philanthropy could help offset City investment and such opportunities should be followed and pursued by the City Manager and the administrating body.

REVIEW OF EXISTING PLANS, PROGRAMS, POLICIES AND LAWS
TOPA aligns with the Berkeley plans, programs, policies and laws in the following way:

City of Berkeley 2019-2020 Strategic Plan
 Create affordable housing and housing support services for our most vulnerable community members
 Champion and demonstrate social and racial equity
 Foster a dynamic, sustainable and locally based economy Housing Element of the General Plan
Objectives
 Housing Affordability. Berkeley residents should have access to quality housing at a range of prices and rents. Housing is least affordable for people at the lowest income levels, and City resources should focus on this area of need.  Maintenance of Existing Housing. Existing housing should be maintained and improved.
 Fair and Accessible Housing. The City should continue to enforce fair housing laws and encourage housing that is universally accessible.  Public Participation. Berkeley should continue to improve the role of the neighborhood residents and community organizations in housing and community development decision making.

Policies and Actions
 Policy H-1 Affordable Housing. Increase the number of housing units affordable to Berkeley residents with lower income levels.
 Policy H-2 Funding Sources. Aggressively search out, advocate for, and develop additional sources of funds for permanently affordable housing, including housing for people with extremely low incomes and special needs.  Policy H-3 Permanent Affordability. Ensure that below market rate rental housing remains affordable for the longest period that is economically and legally feasible.

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 Policy H-4 Economic Diversity. Encourage inclusion of households with a range of incomes in housing developments through both regulatory requirements and incentives.
 Policy H-5 Rent Stabilization. Protect tenants from large rent increases, arbitrary evictions, hardship from relocation and the loss of their homes.  Policy H-6 Rental Housing Conservation and Condominium Conversion.

Preserve existing rental housing by limiting conversion of rental properties to condominiums.
 Policy H-7 Low-Income Homebuyers. Support efforts that provide opportunities for successful home ownership for residents and workers in the City of Berkeley.  Policy H-8 Maintain Housing. Maintain and preserve the existing supply of housing in the City.

Affordable Housing Action Plan adopted November 28, 2017:

High Priority #2: Develop an ordinance modeled after Washington D.C.’s Tenant Opportunity to Purchase Act (TOPA) that offers existing tenants the first right of refusal when property owners place rental property on the sale market, which can be transferred to a qualifying affordable housing provider.

Rent Stabilization and Eviction for Good Cause Ordinance In June 1980, Berkeley residents passed the City’s comprehensive rent stabilization law known as the Rent Stabilization and Eviction for Good Cause Ordinance (BMC Chapter 13.76). The Ordinance regulated most residential rents in Berkeley and provided tenants with increased protection against unwarranted evictions and is intended to maintain affordable housing and preserve community diversity.

However, in 1995, the California Legislature enacted Costa-Hawkins Rental Housing Act. Since that time owners may now set a market rent for most tenancies once a new tenant occupies a unit. While there are some tenants that remain in previous units under the Berkeley Rent Stabilization Ordinance, their rents increase by a set percentage annually. Landlords of rent stabilized units are motivated to get their long tenants to move out, therefore putting these tenants at risk of eviction. TOPA aligns with the spirit of the 1980 law in that it would stabilize the rents in TOPA acquired properties.

Housing for a Diverse, Equitable and Creative Berkeley: Proposing a Framework for Berkeley’s Affordable Housing
Referred to the Housing Advisory Commission, Measure O Committee, and Homeless Services Panel of Experts in July 2019, the proposed Framework presents a vision for affordable housing policy and proposes aligning funding streams with existing and new programs. It is intended to guide the work of City Commissions and the Council in implementing Measure U1, Measure O and

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Measure P and City housing policies. The Framework also sets an ambitious goal of 30% of all housing being dedicated as subsidized affordable housing. Among the many policies and programs recommended, it specifically calls out the acquisition and preservation of existing housing and democratic ownership and control. These strategies are identified as key to preventing displacement, preserving affordability and building wealth. TOPA is also called out as a policy strategy. The Framework is under review by Commissions and has not been adopted by the City Council.

Regional Policies
ABAG and MTC are developing a regional transportation and land use plan to address the region’s housing crisis through 2050. Along with determining the allocation by city, it is also looking at revenue generation and financing methods to support the need for low income housing. TOPA could help Berkeley meet its low-income regional allocation and there is also a possibility that funds generated through ABAG policy, especially through the Bay Area Housing Finance Agency (BAHFA, described above) could help fund some TOPA projects in the future.

FINANCIAL IMPLICATIONS
Revenue impact of Incentive to Sellers
Based on transactions from November 1, 2018 to November 30, 2019, 245 multi-unit residential (including mixed use) properties transferred hands for a total of $9.65M in base transfer tax revenue. Half of the base transfer tax from these properties is approximately $4.825M; this would be the amount the City would forgo with the TOPA program.

Total Base Transfer Tax from November 2018 to November 2019 from multi-unit residential properties $ 9.65M
Eligible amount for TOPA rebate (1/2 of transfer tax) $ 4.83M

% participation in TOPA Revenue Loss in Millions
100% $ 4.83
50% $ 2.41
25% $ 1.21
10% $ 0.48

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The City currently has a Seismic Retrofit Refund Program which provides refunds for voluntary seismic upgrades to residential properties. Up to one-third of the base 1.5% transfer tax may be refunded on a dollar-for-dollar basis. This program applies to structures that are used exclusively for residential purposes, or any mixed-use structure that contains two or more dwelling units.

If half 50% of the base transfer tax is given returned to sellers via the TOPA program, this will have a negative impact on the Seismic Retrofit Refund Program. It should also be noted that the Planning Department is making an effort to enhance the seismic program to include other qualifying measures (regarding energy efficiency) that require a permit. The amount available for rebate to the new buyer would significantly be reduced due to the lower base amount once TOPA is implemented.

Cost for Administration, Education, Outreach and Purchase Support Council can consider additional policies to support TOPA acquisitions that would supplement current funding sources such as: Small Sites Program, Measure U1 tax receipts, Housing Trust Fund and other government resources that might come in the future. One consideration would be the establishment of a Housing Accelerator Fund similar to that established in San Francisco. Acquisition support could include, but not be limited to, purchase deposits, appraisals, down payment assistance, capital improvements and capital reserves.

Additional resources for implementation, administration, enforcement and adjudication are being referred to the City Manager to determine the appropriate level of funding to support the program:
o Cost of administration (including notices, database management, rental cost history and adjustments for non-ownership units)
o Cost of tenant education/outreach/purchase support/adjudication The estimates below draw on D.C.’s workload experience and tenant participation rate to generate expected staffing needs. Berkeley and D.C. could have a comparable number of sales each year covered under TOPA, but D.C.’s housing stock features much larger buildings that require more organizing and technical assistance support.

Budget estimates are broken down into 2 priorities:

1. Ongoing staffing support for Supportive Partners

2. Pre-development and project management needs for Qualified Organizations Staff for “Supportive Partners” (i.e. technical assistance, on-going)

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Berkeley’s TOPA requires tenants to work with a Supportive Partner in order to exercise their rights to purchase under the policy. Supportive partners function in a supportive role to assist tenants in exercising their rights. This may include education, outreach, organizing, supporting tenants through the purchase, connecting tenants to resources, and counseling tenants on first-time homeownership and collective ownership structures.

Washington D.C. funds the equivalent of 8 FTE staff to provide direct outreach and resident organizing support under TOPA, which is broadly comparable to the scope of work envisioned for the Supportive Partners. This level of staffing support provides assistance for 30 transactions per year. Given the slightly reduced organizing workload with smaller buildings, we anticipate a need going forward for 6 FTE staff in order to adequately and professionally support the anticipated number of tenant groups exploring their TOPA rights and either purchasing or assigning their rights. Expected costs for 6 FTE staff positions for Supportive Partners. Salary costs vary but an anticipated average cost of $125,000/year per FTE assuming a salary of between $60,000 to $75,000 plus taxes, benefits and insurance was assumed for estimating.

Total: 6 FTE at $125,000 each = $750,000/year once TOPA has been fully implemented and mature. Initial “ramp-up” is estimated at 2 – 3 FTE.

Costs for pre-development work and project management needs of Qualified Organizations (on-going)
An essential part of the program is sufficient project management capacity at the Qualified Organizations to support the development of TOPA projects. Again, referring to the D.C. model, the City helps support the project management capacity via developer fees. Since this capacity was built up over 40 years of TOPA implementation, it is anticipated that Berkeley will need to support start-up capacity and allow for ongoing support through pre-development funds related to specific TOPA projects.

For the first year of TOPA, Qualified Organizations will need to be able to request pre-development funds of ~$25,000 per project from the City. The City’s existing pre- development loan process provides an excellent model for covering the out of pocket costs of projects, but typically does not cover the staffing and project management costs at that phase.

Due to the unique nature of TOPA project staffing, close work with residents is expected to be a substantial portion of the development workload. If there is a large volume of TOPA projects at once, the Qualified Organizations will likely need a mechanism to advance a portion of developer’s fees to cover early-stage project

59 Tenant Opportunity to Purchase Act (TOPA) ACTION CALENDAR

management. This could mean that Qualified Organizations serving Berkeley may each need a project manager staff to support the volume of projects.

ENVIRONMENTAL SUSTAINABILITY
Creating and preserving affordable housing in Berkeley will allow lower income individuals and families to live closer to transit and to their workplaces, reducing greenhouse gas emissions. Preserving and refurbishing existing housing stock is an important environmental strategy, as reuse/repair/refurbishment of materials avoids spending resources on a new building construction, and the disposal of construction debris. Finally, increasing affordable housing in Berkeley will make the City more economically and racially equitable, which is a goal in Berkeley’s Resilience Strategy.

CONTACT PERSON
Mayor Jesse Arreguín 510-981-7100
Attachments:

1. Ordinance (revised)

2. Zillow Multi Unit MLS Property Sale Information

3. Berkeley Properties and TOPA Applicability

4. DC Apartment Buildings and TOPA

4.5. Community Outreach on TOPA and Responsive Policy Changes

60 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$1,700,000 Detached BERKELEY 10/9/2020 11/2/2020 24 Cash $1,649,000 $1,700,000 1032 Overlook Road $820,000 Detached BERKELEY 7/8/2020 8/10/2020 33 Cash $675,000 $820,000 1034 Pardee St $900,000 Detached BERKELEY 9/6/2020 9/29/2020 23 Cash $899,000 $900,000 1067 Woodside Rd $2,400,000 Detached BERKELEY 6/22/2020 7/17/2020 25 Cash $2,350,000 $2,400,000 1070 Keeler Ave $1,675,000 Detached BERKELEY 10/14/2020 11/10/2020 27 Cash $1,099,000 $1,675,000 1072 Overlook Rd $1,495,000 Detached BERKELEY 1/21/2021 2/11/2021 21 Cash $1,499,000 $1,495,000 1112 Chaucer Street $1,580,000 Detached BERKELEY 10/13/2020 10/13/2020 0 Cash $1,600,000 $1,580,000 1120 The Alameda $1,720,000 Detached BERKELEY 4/4/2020 4/21/2020 17 Cash $1,395,000 $1,720,000 1136 Fresno Ave $1,250,000 Detached BERKELEY 4/3/2020 6/5/2020 82 Cash $1,295,000 $1,250,000 1146 Keith Ave $944,100 Detached BERKELEY 12/4/2020 12/17/2020 14 Cash $849,950 $944,100 1165 Sterling Avenue $597,500 Detached BERKELEY 5/8/2020 6/8/2020 31 Cash $448,888 $597,500 1200 Cornell Ave $1,025,000 Detached BERKELEY 5/24/2020 7/9/2020 46 Cash $900,000 $1,025,000 1209 Oxford St $1,205,000 Detached BERKELEY 2/19/2020 3/19/2020 28 Cash $865,000 $1,205,000 1227 Delaware St $1,310,000 Detached BERKELEY 8/19/2020 9/14/2020 26 Cash $898,000 $1,310,000 1230 66Th St $2,030,000 Detached BERKELEY 9/16/2020 10/20/2020 26 Cash $1,695,000 $2,030,000 1238 Carlotta Ave $1,715,000 Detached BERKELEY 11/5/2020 11/30/2020 25 Cash $1,350,000 $1,715,000 1238 Hearst Ave $1,000,000 Detached BERKELEY 7/7/2020 7/30/2020 13 Cash $895,000 $1,000,000 1241 Carrison St $886,000 Detached BERKELEY 11/25/2020 1/21/2021 57 Cash $850,000 $886,000 1241 Talbot Ave $1,365,000 Detached BERKELEY 2/12/2020 3/13/2020 29 Cash $1,050,000 $1,365,000 1261 Hopkins St $1,620,000 Detached BERKELEY 8/19/2020 9/4/2020 16 Cash $1,295,000 $1,620,000 1293 Queens Rd $1,200,000 Detached BERKELEY 9/15/2020 9/30/2020 15 Cash $829,000 $1,200,000 1301 Blake St $1,499,750 Condo BERKELEY 2/5/2020 3/2/2020 25 Cash $1,050,000 $1,499,750 1307 Henry St $1,460,000 Detached BERKELEY 9/2/2020 9/21/2020 19 Cash $1,079,000 $1,460,000 1309 Parker St $1,375,000 Detached BERKELEY 9/17/2020 10/6/2020 19 Cash $1,190,000 $1,375,000 1322 66Th St $4,100,000 Detached BERKELEY 8/31/2020 9/14/2020 15 Cash $4,100,000 $4,100,000 1325 Arch St $1,210,000 Detached BERKELEY 10/20/2020 11/17/2020 28 Cash $998,000 $1,210,000 1377 Rose St $3,100,000 Detached BERKELEY 9/8/2020 10/7/2020 29 Cash $2,980,000 $3,100,000 1401 Le Roy Ave $915,000 Condo BERKELEY 8/21/2020 9/8/2020 18 Cash $799,000 $915,000 1406 Euclid Ave $800,000 Detached BERKELEY 3/11/2020 5/11/2020 61 Cash $800,000 $800,000 1420 5th St $1,393,000 Detached BERKELEY 9/22/2020 10/13/2020 21 Cash $975,000 $1,393,000 1427 Holly $1,550,000 Detached BERKELEY 6/11/2020 7/7/2020 25 Cash $1,095,000 $1,550,000 1480 Dwight Way $1,206,000 Detached BERKELEY 6/13/2020 7/14/2020 31 Cash $938,000 $1,206,000 1506 California St $975,000 Detached BERKELEY 2/18/2020 4/3/2020 44 Cash $499,000 $975,000 1519 Fairview $3,100,000 Detached BERKELEY 8/28/2020 9/18/2020 21 Cash $2,895,000 $3,100,000 1530 Grizzly Peak Boulevard $1,200,000 Detached BERKELEY 9/25/2020 10/22/2020 27 Cash $989,000 $1,200,000 1589 La Vereda rd

90Page 57 of 167
61 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$1,050,000 Detached BERKELEY 5/28/2020 6/26/2020 29 Cash $1,100,000 $1,050,000 1604 Virginia St $2,900,000 Detached BERKELEY 5/5/2020 5/28/2020 23 Cash $2,850,000 $2,900,000 1615 Francisco St $830,000 Detached BERKELEY 10/5/2020 1/27/2021 114 Cash $799,000 $830,000 1623 Russell St. $850,000 Condo BERKELEY 4/10/2020 5/8/2020 28 Cash $745,000 $850,000 1628 Berkeley Way $1,600,000 Detached BERKELEY 8/22/2020 9/9/2020 18 Cash $1,385,000 $1,600,000 1633 62nd Street $843,000 Detached BERKELEY 6/4/2019 10/28/2020 146 Cash $1,099,000 $843,000 1641 STUART ST. $808,000 Detached BERKELEY 3/3/2020 4/28/2020 56 Cash $599,900 $808,000 1646 Ashby Ave $1,800,000 Detached BERKELEY 11/12/2020 12/3/2020 21 Cash $1,295,000 $1,800,000 1651 Visalia Ave $1,255,000 Detached BERKELEY 8/15/2020 8/15/2020 0 Cash $1,200,000 $1,255,000 1724 Berkeley Way $1,030,000 Detached BERKELEY 9/18/2020 11/5/2020 48 Cash $950,000 $1,030,000 1725 Berkeley Way $3,060,000 Detached BERKELEY 7/8/2020 8/24/2020 47 Cash $2,995,000 $3,060,000 1725 Grand View Dr $1,055,000 Detached BERKELEY 10/8/2020 11/9/2020 31 Cash $799,000 $1,055,000 1734 Cedar St $1,050,000 Detached BERKELEY 4/16/2020 7/13/2020 88 Cash $1,050,000 $1,050,000 1734 Lincoln St $1,150,000 Detached BERKELEY 7/17/2020 9/8/2020 53 Cash $1,295,000 $1,150,000 1770 Rose Street $760,000 Detached BERKELEY 5/13/2020 6/26/2020 44 Cash $750,000 $760,000 1821 Ward Street $1,414,662 Detached BERKELEY 10/23/2020 12/31/2020 69 Cash $1,549,000 $1,414,662 1823 Fairview St $3,300,000 Detached BERKELEY 6/24/2020 10/6/2020 104 Cash $3,450,000 $3,300,000 185 The Uplands $1,075,000 Detached BERKELEY 6/24/2020 7/9/2020 15 Cash $889,000 $1,075,000 1906 Stuart St $827,000 Detached BERKELEY 5/12/2020 7/1/2020 50 Cash $799,000 $827,000 1926 Monterey Ave $2,005,000 Detached BERKELEY 8/8/2020 9/8/2020 31 Cash $1,795,000 $2,005,000 2 Hazel Rd $2,800,000 Detached BERKELEY 5/12/2020 5/12/2020 0 Cash $2,800,000 $2,800,000 20 OAK RIDGE ROAD $2,193,502 Detached BERKELEY 6/5/2019 2/26/2020 266 Cash $2,199,000 $2,193,502 200 Panoramic Way $1,100,000 Detached BERKELEY 10/27/2020 12/23/2020 57 Cash $890,000 $1,100,000 2018 Blake Street $1,175,000 Detached BERKELEY 1/4/2020 2/24/2020 51 Cash $1,150,000 $1,175,000 2121 Woolsey Street $1,400,000 Detached BERKELEY 3/4/2020 4/10/2020 37 Cash $1,140,000 $1,400,000 2131 Spaulding Ave $1,600,000 Detached BERKELEY 7/31/2020 8/21/2020 22 Cash $998,000 $1,600,000 2224 California Street $1,900,000 Detached BERKELEY 7/17/2020 8/18/2020 32 Cash $2,100,000 $1,900,000 2225 Blake Street $2,060,000 Detached BERKELEY 5/1/2020 5/18/2020 17 Cash $1,650,000 $2,060,000 2319 CALIFORNIA STREET $2,343,000 Detached BERKELEY 2/16/2020 3/17/2020 29 Cash $2,195,000 $2,343,000 2333 Rose St $879,000 Condo BERKELEY 4/6/2020 4/17/2020 11 Cash $879,000 $879,000 2352 Hilgard Ave $1,600,000 Detached BERKELEY 10/8/2020 10/23/2020 15 Cash $1,195,000 $1,600,000 2422 Mcgee Ave $1,776,000 Detached BERKELEY 2/5/2020 3/2/2020 25 Cash $1,315,000 $1,776,000 2433 Browning St $1,777,000 Detached BERKELEY 12/9/2020 1/8/2021 31 Cash $899,000 $1,777,000 2508 Woolsey Street $1,280,000 Detached BERKELEY 9/22/2020 10/13/2020 21 Cash $1,225,000 $1,280,000 2623 Virginia St $554,000 Condo BERKELEY 12/8/2020 1/15/2021 38 Cash $549,000 $554,000 2628 Telegraph

91Page 58 of 167
62 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$630,000 Condo BERKELEY 11/12/2020 12/4/2020 32 Cash $640,000 $630,000 2634 Virginia St $1,525,000 Detached BERKELEY 1/14/2021 2/11/2021 28 Cash $1,049,000 $1,525,000 2641 Grant St $2,825,000 Detached BERKELEY 11/10/2020 12/10/2020 30 Cash $2,585,000 $2,825,000 265 Hillcrest Road $630,000 Condo BERKELEY 7/21/2020 8/10/2020 20 Cash $599,888 $630,000 2700 Le Conte Ave $1,715,000 Detached BERKELEY 10/20/2020 12/16/2020 57 Cash $1,795,000 $1,715,000 2709 College Ave $2,100,000 Detached BERKELEY 10/15/2020 11/12/2020 38 Cash $1,795,000 $2,100,000 2738 Benvenue Ave $495,000 Condo BERKELEY 1/28/2020 5/6/2020 35 Cash $495,000 $495,000 2747 san pablo $1,450,000 Detached BERKELEY 8/21/2020 10/19/2020 59 Cash $1,100,000 $1,450,000 2777 Hilgard Ave $1,660,000 Detached BERKELEY 10/7/2020 11/24/2020 48 Cash $1,495,000 $1,660,000 2800 Piedmont ave $1,300,000 Detached BERKELEY 1/20/2021 2/4/2021 15 Cash $895,000 $1,300,000 2801 Park St $1,350,000 Detached BERKELEY 7/30/2020 8/14/2020 16 Cash $800,000 $1,350,000 2809 Fulton $4,370,000 Detached BERKELEY 10/8/2020 12/18/2020 71 Cash $4,295,000 $4,370,000 2902 Buena Vista Way $585,000 Condo BERKELEY 10/16/2020 11/2/2020 17 Cash $585,000 $585,000 2907 Channing Way $1,227,500 Detached BERKELEY 9/27/2020 10/23/2020 26 Cash $1,085,000 $1,227,500 2910 Acton Street $1,330,000 Detached BERKELEY 3/17/2020 6/2/2020 77 Cash $1,350,000 $1,330,000 2943 Hillegass Ave $1,800,000 Detached BERKELEY 4/20/2020 5/18/2020 28 Cash $1,600,000 $1,800,000 30 Bay Tree Lane $955,000 Condo BERKELEY 11/30/2020 12/23/2020 24 Cash $789,000 $955,000 3040 College Ave $335,000 Condo BERKELEY 5/26/2020 6/16/2020 21 Cash $299,000 $335,000 3050 College Ave $1,750,000 Detached BERKELEY 1/13/2021 2/5/2021 23 Cash $1,325,000 $1,750,000 3075 Bateman St $2,510,000 Detached BERKELEY 3/18/2020 4/1/2020 14 Cash $1,999,000 $2,510,000 45 The Plaza Dr $1,025,000 Detached BERKELEY 8/6/2020 8/28/2020 22 Cash $848,000 $1,025,000 48 Mosswood Rd $1,650,000 Detached BERKELEY 7/5/2020 9/8/2020 65 Cash $1,900,000 $1,650,000 5 W Parnassus Ct $2,230,000 Detached BERKELEY 5/20/2020 6/5/2020 16 Cash $1,995,000 $2,230,000 536 The Alameda $1,177,000 Detached BERKELEY 3/31/2020 4/22/2020 23 Cash $1,050,000 $1,177,000 545 Panoramic Way $1,814,000 Detached BERKELEY 9/4/2020 9/25/2020 21 Cash $1,295,000 $1,814,000 573 Santa Rosa Ave $900,000 Detached BERKELEY 8/8/2020 9/3/2020 26 Cash $829,000 $900,000 604 neilson $1,400,639 Detached BERKELEY 1/18/2021 2/8/2021 21 Cash $999,000 $1,400,639 639 Cragmont $2,500,000 Detached BERKELEY 9/24/2020 10/13/2020 19 Cash $1,995,000 $2,500,000 646 COLUSA AVENUE $2,300,000 Detached BERKELEY 6/25/2020 7/16/2020 21 Cash $1,800,000 $2,300,000 649 Alvarado Rd $1,816,616 Detached BERKELEY 3/6/2020 4/20/2020 45 Cash $1,995,000 $1,816,616 765 San Luis Rd $3,000,000 Detached BERKELEY 3/24/2020 3/24/2020 0 Cash $2,695,000 $3,000,000 822 Mendocino Ave $2,335,000 Detached BERKELEY 2/24/2020 3/19/2020 23 Cash $1,895,000 $2,335,000 844 Spruce St $1,960,000 Detached BERKELEY 1/7/2021 1/26/2021 19 Cash $1,430,000 $1,960,000 90 Alamo Ave $1,908,108 Detached BERKELEY 9/18/2020 10/28/2020 40 Cash $1,908,108 $1,908,108 906 Hearst Ave $1,650,000 Detached BERKELEY 1/15/2020 2/19/2020 35 Conventional $1,395,000 $1,650,000 1 Rock Ln

92Page 59 of 167
63 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$1,625,000 Detached BERKELEY 12/2/2019 3/9/2020 70 Conventional $1,625,000 $1,625,000 10 Terrace Walk $1,600,000 Detached BERKELEY 9/19/2020 10/30/2020 41 Conventional $1,325,000 $1,600,000 100 Parnassus Rd $1,300,000 Detached BERKELEY 7/30/2020 10/30/2020 92 Conventional $1,449,000 $1,300,000 1000 Mariposa Ave $1,200,000 Detached BERKELEY 3/6/2020 4/22/2020 12 Conventional $899,000 $1,200,000 1001 Merced St $925,000 Detached BERKELEY 12/11/2020 2/8/2021 59 Conventional $850,000 $925,000 1004 Cedar St $1,500,000 Detached BERKELEY 6/12/2020 10/7/2020 117 Conventional $1,598,000 $1,500,000 1008 Euclid Ave $1,200,000 Detached BERKELEY 8/13/2020 9/22/2020 40 Conventional $1,250,000 $1,200,000 101 Tamalpais Rd $1,400,000 Detached BERKELEY 10/22/2020 1/5/2021 75 Conventional $1,499,888 $1,400,000 101 Tunnel Road $1,450,000 Detached BERKELEY 5/27/2020 6/24/2020 28 Conventional $1,349,000 $1,450,000 1016 Cedar St $1,200,000 Detached BERKELEY 5/7/2020 6/4/2020 28 Conventional $1,000,000 $1,200,000 1019 Addison Street $1,410,000 Detached BERKELEY 11/25/2020 1/11/2021 47 Conventional $1,200,000 $1,410,000 1019 Middlefield Rd $1,350,000 Detached BERKELEY 10/9/2020 11/13/2020 35 Conventional $1,095,000 $1,350,000 1025 Colusa Ave $885,000 Detached BERKELEY 12/14/2019 3/3/2020 79 Conventional $899,900 $885,000 1030 Camelia Street $849,000 Condo BERKELEY 10/2/2020 11/2/2020 31 Conventional $849,000 $849,000 1032 Delaware St $1,440,000 Detached BERKELEY 5/30/2020 8/28/2020 90 Conventional $1,395,000 $1,440,000 1032 Keith Ave $1,900,000 Detached BERKELEY 7/6/2020 8/14/2020 39 Conventional $1,850,000 $1,900,000 1033 Amito Dr $1,250,000 Detached BERKELEY 12/10/2020 2/5/2021 57 Conventional $1,250,000 $1,250,000 1034 Pardee St $1,655,000 Detached BERKELEY 12/29/2020 2/9/2021 42 Conventional $1,395,000 $1,655,000 1036 Creston Rd $2,100,000 Detached BERKELEY 10/24/2020 12/15/2020 52 Conventional $1,970,000 $2,100,000 1040 AMITO DR $905,000 Detached BERKELEY 3/17/2020 6/5/2020 80 Conventional $898,000 $905,000 1040 Camelia $1,190,000 Detached BERKELEY 5/3/2020 8/5/2020 94 Conventional $1,250,000 $1,190,000 1044 Siler Pl $1,750,000 Detached BERKELEY 6/18/2020 8/4/2020 47 Conventional $1,750,000 $1,750,000 1050 Grand View Dr $1,575,000 Detached BERKELEY 3/27/2020 3/27/2020 0 Conventional $1,575,000 $1,575,000 1057 Monterey Ave $1,605,000 Detached BERKELEY 11/2/2020 12/3/2020 31 Conventional $1,605,000 $1,605,000 1076 Siler Pl $2,100,000 Detached BERKELEY 12/9/2020 1/14/2021 36 Conventional $1,998,000 $2,100,000 109 Strathmoor Dr $1,450,000 Detached BERKELEY 10/23/2020 11/30/2020 37 Conventional $1,198,000 $1,450,000 1097 MILLER AVENUE $1,865,000 Detached BERKELEY 3/4/2020 4/24/2020 42 Conventional $1,695,000 $1,865,000 1100 The Alameda $1,400,000 Detached BERKELEY 10/16/2020 12/2/2020 47 Conventional $1,297,000 $1,400,000 1104 Park Hills Rd $1,370,000 Detached BERKELEY 10/8/2020 12/11/2020 64 Conventional $1,449,000 $1,370,000 1104 Woodside Rd $1,335,000 Detached BERKELEY 9/17/2020 10/19/2020 28 Conventional $1,295,000 $1,335,000 1106 Besito Ave $2,099,000 Detached BERKELEY 5/9/2020 10/2/2020 136 Conventional $2,000,000 $2,099,000 1107 Alvarado Rd $1,210,000 Detached BERKELEY 10/21/2020 11/19/2020 29 Conventional $895,000 $1,210,000 1108 Dwight Way $2,000,000 Detached BERKELEY 9/1/2020 10/7/2020 36 Conventional $1,195,000 $2,000,000 1109 Cowper St $2,700,000 Detached BERKELEY 8/17/2020 9/10/2020 22 Conventional $2,195,000 $2,700,000 111 Alvarado Rd $1,100,000 Detached BERKELEY 2/12/2020 3/17/2020 33 Conventional $850,000 $1,100,000 1110 Chaucer St

93Page 60 of 167
64 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$1,500,000 Detached BERKELEY 11/16/2020 12/23/2020 37 Conventional $1,495,000 $1,500,000 1114 Hillview Rd $1,200,000 Detached BERKELEY 3/11/2020 4/14/2020 45 Conventional $899,000 $1,200,000 1117 Cowper St $1,550,000 Detached BERKELEY 11/20/2020 12/29/2020 39 Conventional $1,125,000 $1,550,000 1121 Grizzly Peak Blvd $1,545,000 Detached BERKELEY 12/24/2020 12/24/2020 0 Conventional $1,500,000 $1,545,000 1125 Grizzly Peak Blvd $888,000 Condo BERKELEY 3/10/2020 4/21/2020 42 Conventional $795,000 $888,000 1125 Hearst Ave $1,500,000 Detached BERKELEY 9/17/2020 10/26/2020 39 Conventional $1,160,000 $1,500,000 1125 Spruce St $1,460,000 Detached BERKELEY 9/8/2020 10/9/2020 31 Conventional $995,000 $1,460,000 1126 Miller Ave $1,550,000 Detached BERKELEY 9/24/2020 10/30/2020 36 Conventional $1,295,000 $1,550,000 1135 The Alameda $1,051,000 Condo BERKELEY 6/3/2020 7/9/2020 33 Conventional $950,000 $1,051,000 1140 Delaware $2,200,000 Detached BERKELEY 3/21/2020 7/10/2020 111 Conventional $2,150,000 $2,200,000 1143 Keith Ave $2,600,000 Detached BERKELEY 7/17/2020 8/20/2020 34 Conventional $1,995,000 $2,600,000 1146 Spruce St $3,126,000 Detached BERKELEY 8/19/2020 10/16/2020 58 Conventional $2,599,000 $3,126,000 115 Parkside Dr $1,700,000 Detached BERKELEY 10/2/2020 11/2/2020 30 Conventional $1,498,000 $1,700,000 1151 Woodside Rd $1,500,000 Detached BERKELEY 7/30/2020 9/10/2020 42 Conventional $1,150,000 $1,500,000 1157 Cragmont Ave. $1,830,000 Detached BERKELEY 4/6/2020 7/9/2020 94 Conventional $1,895,000 $1,830,000 1157 Oxford Street $1,200,000 Detached BERKELEY 4/22/2020 5/29/2020 37 Conventional $1,050,000 $1,200,000 1161 Miller Ave $2,900,000 Detached BERKELEY 10/23/2020 12/29/2020 67 Conventional $2,800,000 $2,900,000 1165 Miller Avenue $1,300,000 Detached BERKELEY 11/24/2020 12/30/2020 36 Conventional $1,110,000 $1,300,000 1171 1/2 Grizzly Peak Blvd $1,260,000 Detached BERKELEY 12/11/2020 1/21/2021 41 Conventional $919,000 $1,260,000 1171 Glen Ave $1,390,000 Detached BERKELEY 10/28/2019 8/28/2020 304 Conventional $1,195,000 $1,390,000 1171 Sterling Ave $1,640,000 Detached BERKELEY 5/22/2020 6/19/2020 28 Conventional $1,385,000 $1,640,000 1171 Sutter St $1,600,000 Detached BERKELEY 7/31/2020 9/10/2020 41 Conventional $1,395,000 $1,600,000 1174 Cragmont Ave $1,100,000 Detached BERKELEY 10/2/2020 11/13/2020 32 Conventional $987,000 $1,100,000 1180 Keeler Ave $1,350,000 Detached BERKELEY 10/29/2020 12/10/2020 42 Conventional $1,295,000 $1,350,000 1190 Grizzly Peak Blvd $1,950,000 Detached BERKELEY 2/11/2020 3/24/2020 41 Conventional $1,750,000 $1,950,000 1194 Cragmont Ave $890,000 Detached BERKELEY 9/1/2020 10/20/2020 49 Conventional $699,000 $890,000 1200 Cornell Ave $1,275,000 Detached BERKELEY 6/12/2020 7/10/2020 28 Conventional $1,049,000 $1,275,000 1201 Hopkins St $1,575,000 Detached BERKELEY 9/11/2020 10/21/2020 40 Conventional $1,498,000 $1,575,000 121 Brookside Dr $2,400,000 Detached BERKELEY 11/4/2020 12/15/2020 41 Conventional $1,875,000 $2,400,000 1211 Spruce Street $955,000 Detached BERKELEY 7/17/2020 8/12/2020 26 Conventional $925,000 $955,000 1214 Talbot Ave $2,088,888 Detached BERKELEY 7/23/2020 9/3/2020 42 Conventional $1,400,000 $2,088,888 1215 Delaware St $1,300,000 Detached BERKELEY 4/7/2020 5/29/2020 52 Conventional $1,300,000 $1,300,000 1220 Martin Luther King Jr Way $1,100,000 Detached BERKELEY 3/6/2020 4/21/2020 46 Conventional $975,000 $1,100,000 1220 Peralta Ave $1,460,000 Detached BERKELEY 12/2/2020 1/20/2021 49 Conventional $1,195,000 $1,460,000 1222 Russell Street $838,000 Detached BERKELEY 10/1/2020 11/24/2020 55 Conventional $780,000 $838,000 1225 Cedar St

94Page 61 of 167
65 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$1,600,000 Detached BERKELEY 8/29/2020 10/12/2020 44 Conventional $1,049,000 $1,600,000 1226 Carleton St $3,500,000 Detached BERKELEY 8/11/2020 9/8/2020 28 Conventional $3,465,000 $3,500,000 123 Parkside Dr $975,000 Detached BERKELEY 3/11/2020 4/24/2020 44 Conventional $995,000 $975,000 1236 Neilson Street $1,180,000 Detached BERKELEY 10/9/2020 11/6/2020 28 Conventional $925,000 $1,180,000 1242 Addison St $1,330,000 Detached BERKELEY 6/23/2020 7/30/2020 37 Conventional $1,095,000 $1,330,000 1249 Bancroft Way $755,000 Detached BERKELEY 9/20/2020 12/18/2020 90 Conventional $739,000 $755,000 1253 Ashby $1,050,000 Detached BERKELEY 8/19/2020 10/1/2020 42 Conventional $949,000 $1,050,000 1254 67Th St $2,600,000 Detached BERKELEY 2/21/2020 3/17/2020 24 Conventional $1,495,000 $2,600,000 1270 Monterey Avenue $815,000 Condo BERKELEY 1/15/2020 4/7/2020 80 Conventional $749,000 $815,000 1301 Bonita Ave $1,270,000 Detached BERKELEY 6/2/2020 7/24/2020 52 Conventional $1,025,000 $1,270,000 1303 Mcgee Ave $825,000 Detached BERKELEY 12/3/2020 2/11/2021 70 Conventional $799,000 $825,000 1308 Alcatraz Ave $1,409,500 Detached BERKELEY 7/29/2020 9/4/2020 37 Conventional $1,100,000 $1,409,500 1308 Derby Street $865,000 Detached BERKELEY 2/11/2020 6/26/2020 135 Conventional $799,000 $865,000 131 Avenida Dr $935,000 Detached BERKELEY 4/12/2020 5/8/2020 26 Conventional $899,888 $935,000 1310 Dwight Way $1,771,750 Detached BERKELEY 7/6/2020 11/9/2020 126 Conventional $1,790,000 $1,771,750 1310 Evelyn Ave $284,661 Condo BERKELEY 5/15/2020 9/1/2020 109 Conventional $284,661 $284,661 1314 Haskell St $985,000 Detached BERKELEY 8/11/2020 9/23/2020 43 Conventional $985,000 $985,000 1314 La Loma Ave $1,065,000 Detached BERKELEY 1/8/2020 3/31/2020 82 Conventional $998,000 $1,065,000 1322 Carrison St $3,100,000 Detached BERKELEY 11/10/2020 12/25/2020 45 Conventional $3,100,000 $3,100,000 1326 Arch St $900,000 Condo BERKELEY 11/5/2020 12/10/2020 35 Conventional $785,000 $900,000 1329 66Th St $1,290,000 Detached BERKELEY 11/5/2020 12/29/2020 54 Conventional $1,050,000 $1,290,000 1329 Albina Ave $1,085,000 Detached BERKELEY 8/27/2020 10/5/2020 39 Conventional $895,000 $1,085,000 1331 Gilman St $1,021,000 Condo BERKELEY 9/16/2020 10/29/2020 43 Conventional $769,000 $1,021,000 1336 Berkeley Way $953,000 Condo BERKELEY 9/15/2020 10/9/2020 24 Conventional $849,000 $953,000 1337 Henry St $1,350,000 Detached BERKELEY 1/6/2020 3/12/2020 63 Conventional $1,249,000 $1,350,000 1347 La Loma Ave $800,000 Detached BERKELEY 6/11/2020 9/18/2020 99 Conventional $799,000 $800,000 1349 Neilson $960,000 Detached BERKELEY 10/20/2020 12/21/2020 62 Conventional $989,000 $960,000 1360 Virginia St $1,000,000 Detached BERKELEY 3/9/2020 5/20/2020 72 Conventional $1,000,000 $1,000,000 1376 Grizzly Peak Blvd $1,450,000 Detached BERKELEY 2/26/2020 4/14/2020 47 Conventional $1,095,000 $1,450,000 1385 Virginia St $1,525,000 Detached BERKELEY 7/10/2020 8/5/2020 26 Conventional $1,079,000 $1,525,000 1386 Gilman St $925,000 Detached BERKELEY 1/13/2021 2/3/2021 31 Conventional $850,000 $925,000 1390 Summit Rd $1,700,000 Detached BERKELEY 5/29/2020 11/5/2020 160 Conventional $1,775,000 $1,700,000 14 Chancellor Pl $2,175,000 Detached BERKELEY 10/26/2020 12/9/2020 14 Conventional $1,695,000 $2,175,000 14 Eucalyptus Rd $1,100,000 Detached BERKELEY 8/21/2020 2/2/2021 165 Conventional $1,295,000 $1,100,000 140 Panoramic Way $1,380,000 Detached BERKELEY 8/30/2020 11/6/2020 69 Conventional $1,288,888 $1,380,000 1401 Channing Way

95Page 62 of 167
66 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$1,250,000 Condo BERKELEY 3/6/2020 4/17/2020 39 Conventional $945,000 $1,250,000 1401 Walnut St $1,625,000 Detached BERKELEY 1/13/2020 2/18/2020 36 Conventional $1,350,000 $1,625,000 1404 Cypress St $1,097,469 Detached BERKELEY 5/29/2020 7/2/2020 34 Conventional $1,100,000 $1,097,469 1406 Peralta Ave $700,000 Condo BERKELEY 12/2/2020 12/29/2020 27 Conventional $675,000 $700,000 1406 San Pablo Avenue $860,000 Detached BERKELEY 6/3/2020 7/2/2020 29 Conventional $698,000 $860,000 1411 10Th St $1,175,000 Detached BERKELEY 8/25/2020 10/16/2020 42 Conventional $1,050,000 $1,175,000 1411 Acroft Court $950,000 Detached BERKELEY 9/17/2020 10/23/2020 36 Conventional $799,000 $950,000 1411 Acton Crescent $1,500,000 Detached BERKELEY 1/14/2021 2/17/2021 34 Conventional $1,049,000 $1,500,000 1411 Lincoln St $1,225,000 Detached BERKELEY 1/29/2020 2/28/2020 30 Conventional $950,000 $1,225,000 1414 Kains Avenue $1,384,500 Condo BERKELEY 7/29/2020 9/11/2020 44 Conventional $1,300,000 $1,384,500 1414 Oxford St $1,530,000 Detached BERKELEY 9/17/2020 10/23/2020 35 Conventional $1,049,000 $1,530,000 1416 Neilson Street $950,000 Detached BERKELEY 6/16/2020 8/19/2020 64 Conventional $950,000 $950,000 1417 Fairview St $1,300,000 Detached BERKELEY 2/19/2020 3/31/2020 40 Conventional $979,000 $1,300,000 1418 Grant St $1,490,000 Detached BERKELEY 2/7/2020 5/13/2020 34 Conventional $1,198,000 $1,490,000 1419 Derby St $952,000 Detached BERKELEY 10/12/2020 11/19/2020 36 Conventional $850,000 $952,000 1419 Harmon St. $1,250,000 Detached BERKELEY 10/13/2020 11/20/2020 38 Conventional $949,000 $1,250,000 1420 Acroft Ct $1,301,000 Detached BERKELEY 11/30/2020 1/8/2021 40 Conventional $899,000 $1,301,000 1421 Cornell Ave $1,335,000 Detached BERKELEY 11/2/2020 12/8/2020 36 Conventional $1,095,000 $1,335,000 1424 Stannage Ave $950,000 Detached BERKELEY 7/7/2020 8/16/2020 0 Conventional $899,000 $950,000 1428 Ward St $1,395,000 Detached BERKELEY 10/2/2020 11/6/2020 35 Conventional $1,285,000 $1,395,000 1429 Campus Dr $1,300,000 Detached BERKELEY 7/27/2020 10/5/2020 70 Conventional $1,350,000 $1,300,000 1434 Queens Road $1,300,000 Detached BERKELEY 5/18/2020 7/1/2020 44 Conventional $1,050,000 $1,300,000 1436 Carleton Street $1,205,781 Detached BERKELEY 9/25/2020 11/16/2020 52 Conventional $900,000 $1,205,781 1436 Delaware St $1,083,000 Detached BERKELEY 9/25/2020 11/5/2020 41 Conventional $895,000 $1,083,000 1444 66Th St $1,250,000 Detached BERKELEY 1/29/2020 3/16/2020 46 Conventional $989,000 $1,250,000 1444 Queens Rd $699,000 Condo BERKELEY 10/16/2020 12/10/2020 55 Conventional $699,000 $699,000 1450 4th Street $1,600,000 Detached BERKELEY 7/17/2020 8/25/2020 39 Conventional $1,495,000 $1,600,000 1451 Scenic Ave $1,480,000 Detached BERKELEY 7/17/2020 9/3/2020 51 Conventional $1,395,000 $1,480,000 1452 Grizzly Peak Blvd $1,610,000 Detached BERKELEY 11/6/2020 12/17/2020 31 Conventional $1,349,000 $1,610,000 1457 Olympus Ave $1,328,000 Detached BERKELEY 11/12/2020 12/29/2020 47 Conventional $1,328,000 $1,328,000 1459 Grizzly Peak Blvd $1,300,000 Detached BERKELEY 7/9/2020 8/20/2020 42 Conventional $1,288,000 $1,300,000 1464 Olympus Ave $1,650,000 Detached BERKELEY 1/23/2020 3/5/2020 40 Conventional $1,190,000 $1,650,000 1468 Stannage Ave $1,510,000 Detached BERKELEY 8/20/2020 9/25/2020 36 Conventional $1,499,000 $1,510,000 149 Strathmoor Dr $2,400,000 Detached BERKELEY 9/11/2019 4/6/2020 207 Conventional $2,650,000 $2,400,000 150 Bret Harte Rd $1,660,000 Detached BERKELEY 6/23/2020 7/23/2020 30 Conventional $1,495,000 $1,660,000 1500 Spruce St

96Page 63 of 167
67 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$1,095,000 Detached BERKELEY 7/22/2020 9/11/2020 51 Conventional $1,095,000 $1,095,000 1501 Channing Way $950,000 Detached BERKELEY 9/30/2020 11/12/2020 43 Conventional $925,000 $950,000 1504 Russell St $925,000 Detached BERKELEY 9/30/2020 1/13/2021 76 Conventional $950,000 $925,000 1505 Russell St $1,499,000 Detached BERKELEY 4/12/2020 5/15/2020 33 Conventional $1,495,000 $1,499,000 1507 Grant St $2,050,000 Detached BERKELEY 10/1/2020 11/9/2020 39 Conventional $1,595,000 $2,050,000 1509 HOLLY STREET $1,282,000 Detached BERKELEY 1/29/2020 3/6/2020 36 Conventional $925,000 $1,282,000 1512 Bonita Ave $1,150,000 Detached BERKELEY 4/17/2020 5/18/2020 31 Conventional $1,050,000 $1,150,000 1513 Juanita Way $860,000 Detached BERKELEY 8/13/2020 9/23/2020 41 Conventional $795,000 $860,000 1514 Allston Way $960,000 Detached BERKELEY 6/3/2020 9/3/2020 92 Conventional $960,000 $960,000 1514 Prince St $1,350,000 Detached BERKELEY 9/24/2020 11/3/2020 40 Conventional $1,095,000 $1,350,000 1516 Hopkins St $950,000 Detached BERKELEY 8/18/2020 9/23/2020 36 Conventional $750,089 $950,000 1519 Carleton $1,350,000 Detached BERKELEY 6/11/2020 7/31/2020 50 Conventional $990,000 $1,350,000 1519 Milvia St $1,593,750 Detached BERKELEY 10/16/2020 12/2/2020 47 Conventional $1,550,000 $1,593,750 1519 Westview Dr $1,349,000 Detached BERKELEY 10/22/2020 11/30/2020 39 Conventional $1,349,000 $1,349,000 1522 Summit $1,300,000 Detached BERKELEY 8/26/2020 9/29/2020 34 Conventional $925,000 $1,300,000 1527 Buena Ave $640,000 Condo BERKELEY 11/7/2020 1/8/2021 62 Conventional $575,000 $640,000 1528 Julia St $1,605,000 Detached BERKELEY 6/25/2020 7/28/2020 33 Conventional $1,295,000 $1,605,000 1528 Mcgee Ave $1,400,000 Detached BERKELEY 5/4/2020 6/12/2020 39 Conventional $1,389,000 $1,400,000 1530 Carleton St $1,010,000 Detached BERKELEY 5/22/2020 6/18/2020 27 Conventional $799,000 $1,010,000 1530 Rose St $1,500,000 Detached BERKELEY 11/21/2020 1/12/2021 52 Conventional $1,499,000 $1,500,000 1536 62nd St $1,190,000 Detached BERKELEY 12/2/2020 1/14/2021 33 Conventional $849,000 $1,190,000 1547 Sacramento St $1,095,000 Detached BERKELEY 8/26/2020 10/2/2020 37 Conventional $998,000 $1,095,000 1555 Oregon St $1,000,000 Detached BERKELEY 11/6/2020 12/16/2020 30 Conventional $949,000 $1,000,000 1558 Acton St $1,010,000 Detached BERKELEY 7/10/2020 8/10/2020 31 Conventional $999,000 $1,010,000 1575 Portland Ave $978,000 Condo BERKELEY 9/23/2020 11/12/2020 50 Conventional $829,000 $978,000 1583 Arch St $1,550,000 Detached BERKELEY 8/21/2020 10/1/2020 40 Conventional $1,350,000 $1,550,000 1590 Campus Dr $1,015,000 Detached BERKELEY 3/6/2020 8/10/2020 157 Conventional $1,025,000 $1,015,000 1604 Belvedere Avenue $1,069,000 Detached BERKELEY 6/12/2020 12/11/2020 182 Conventional $1,075,999 $1,069,000 1605 Tyler St $1,415,000 Detached BERKELEY 11/18/2020 12/30/2020 42 Conventional $1,398,000 $1,415,000 1607 5th St $1,445,000 Detached BERKELEY 9/24/2020 10/29/2020 35 Conventional $1,095,000 $1,445,000 1608 Virginia St $1,925,000 Detached BERKELEY 5/12/2020 6/17/2020 36 Conventional $1,895,000 $1,925,000 1609 Visalia $1,275,000 Detached BERKELEY 5/14/2020 6/19/2020 36 Conventional $998,000 $1,275,000 1611 Beverly Place $1,260,000 Detached BERKELEY 10/13/2020 11/18/2020 35 Conventional $1,075,000 $1,260,000 1611 Curtis St $1,144,000 Detached BERKELEY 8/19/2020 11/10/2020 83 Conventional $1,225,000 $1,144,000 1613 Fifth St $1,200,000 Detached BERKELEY 11/19/2020 1/28/2021 70 Conventional $1,299,888 $1,200,000 1615 62Nd St

97Page 64 of 167
68 Price Building Type City List Date Closing Date
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Closing Date How Sold List Price Sold Price Address
$880,000 Detached BERKELEY 10/9/2020 11/18/2020 40 Conventional $798,000 $880,000 1618 Belvedere Ave $1,200,000 Detached BERKELEY 10/6/2020 11/20/2020 45 Conventional $899,000 $1,200,000 1618 Grant St $1,425,000 Detached BERKELEY 5/23/2020 7/7/2020 43 Conventional $1,500,000 $1,425,000 1620 Berkeley Way $1,450,000 Detached BERKELEY 9/16/2020 10/20/2020 34 Conventional $1,095,000 $1,450,000 1620 California St $1,149,000 Detached BERKELEY 5/20/2020 9/16/2020 119 Conventional $1,149,000 $1,149,000 1628 Acton St $1,145,000 Detached BERKELEY 10/28/2020 12/11/2020 44 Conventional $925,000 $1,145,000 1628 Eighth St $1,300,000 Detached BERKELEY 12/9/2020 1/15/2021 39 Conventional $975,000 $1,300,000 1630 Derby St $1,780,000 Detached BERKELEY 3/19/2020 5/6/2020 48 Conventional $1,549,000 $1,780,000 1631 Fairview St $1,450,000 Detached BERKELEY 10/6/2020 11/12/2020 37 Conventional $998,000 $1,450,000 1634 California St $1,500,000 Detached BERKELEY 4/8/2020 6/19/2020 72 Conventional $1,595,000 $1,500,000 1634 McGee Ave $980,000 Detached BERKELEY 1/7/2021 1/22/2021 0 Conventional $759,000 $980,000 1634 Ninth St $885,000 Condo BERKELEY 2/24/2020 2/24/2020 0 Conventional $885,000 $885,000 1635 Scenic Ave $2,000,000 Detached BERKELEY 9/23/2020 11/3/2020 41 Conventional $1,799,000 $2,000,000 1636 7Th St $1,536,000 Detached BERKELEY 1/14/2020 2/20/2020 37 Conventional $995,000 $1,536,000 1636 Chestnut St $1,925,000 Detached BERKELEY 10/17/2020 1/29/2021 104 Conventional $1,940,000 $1,925,000 1638 Grand View Dr $950,000 Detached BERKELEY 7/10/2020 9/22/2020 74 Conventional $799,000 $950,000 1639 Julia St $1,136,000 Detached BERKELEY 10/23/2020 12/14/2020 52 Conventional $950,000 $1,136,000 1653 Ashby Ave $1,135,000 Detached BERKELEY 9/14/2020 11/9/2020 56 Conventional $948,000 $1,135,000 1660 Sacramento St $2,250,000 Detached BERKELEY 1/22/2020 2/27/2020 34 Conventional $1,995,000 $2,250,000 17 Eucalyptus Rd $1,950,000 Detached BERKELEY 10/16/2020 11/23/2020 38 Conventional $1,695,000 $1,950,000 170 Tamalpais Rd $1,000,000 Detached BERKELEY 6/5/2020 7/17/2020 42 Conventional $895,000 $1,000,000 1703 Russell St $1,315,000 Detached BERKELEY 6/25/2020 11/10/2020 138 Conventional $1,350,000 $1,315,000 1703 Sacramento St $1,065,000 Detached BERKELEY 9/30/2020 12/4/2020 66 Conventional $850,000 $1,065,000 1712 Blake St $1,007,350 Detached BERKELEY 6/27/2020 7/27/2020 30 Conventional $819,000 $1,007,350 1715 Sacramento St $1,312,500 Detached BERKELEY 9/23/2020 10/30/2020 37 Conventional $975,000 $1,312,500 1716 Stuart St $1,450,000 Detached BERKELEY 1/29/2020 3/5/2020 33 Conventional $998,000 $1,450,000 1718 Dwight Way $1,490,000 Detached BERKELEY 12/1/2020 1/5/2021 35 Conventional $1,095,000 $1,490,000 1722 San Lorenzo Ave $757,500 Condo BERKELEY 5/1/2020 6/11/2020 42 Conventional $757,500 $757,500 1726 Hearst Ave $1,600,000 Detached BERKELEY 4/25/2020 7/3/2020 39 Conventional $1,495,000 $1,600,000 1729 Milvia St $1,300,000 Detached BERKELEY 10/7/2020 11/20/2020 44 Conventional $1,400,000 $1,300,000 1732 Dwight Way $964,000 Detached BERKELEY 7/22/2020 8/28/2020 35 Conventional $799,000 $964,000 1733 Blake St $1,375,000 Detached BERKELEY 3/20/2020 4/2/2020 13 Conventional $1,500,000 $1,375,000 1733 Capistrano Ave $1,010,000 Townhouse BERKELEY 6/20/2020 8/4/2020 40 Conventional $795,000 $1,010,000 1733 Francisco St $1,610,000 Detached BERKELEY 10/22/2020 11/24/2020 32 Conventional $1,295,000 $1,610,000 1743 Cedar St $1,425,000 Detached BERKELEY 8/6/2020 9/22/2020 47 Conventional $1,025,000 $1,425,000 1744 Mcgee Ave

98Page 65 of 167
69 Price Building Type City List Date Closing Date
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Closing Date How Sold List Price Sold Price Address
$607,000 Condo BERKELEY 1/6/2021 2/17/2021 42 Conventional $520,000 $607,000 1767 Euclid Ave $1,427,500 Detached BERKELEY 11/7/2020 12/17/2020 30 Conventional $1,199,000 $1,427,500 1801 Ward St $369,000 Condo BERKELEY 7/22/2020 10/30/2020 100 Conventional $379,000 $369,000 1804 8th St $425,000 Condo BERKELEY 7/9/2020 10/30/2020 113 Conventional $419,000 $425,000 1808 A 8Th St $1,725,000 Detached BERKELEY 7/22/2020 8/27/2020 35 Conventional $1,375,000 $1,725,000 1811 Berkeley Way $1,581,136 Detached BERKELEY 5/8/2020 8/19/2020 93 Conventional $1,595,000 $1,581,136 1817 Carleton St C $1,775,000 Detached BERKELEY 12/1/2020 1/6/2021 37 Conventional $1,298,000 $1,775,000 1821 San Ramon Avenue $2,050,000 Detached BERKELEY 9/1/2020 10/7/2020 36 Conventional $1,875,000 $2,050,000 1823 Blake St $580,000 Condo BERKELEY 11/19/2020 2/5/2021 77 Conventional $549,000 $580,000 1825 Vine St $1,500,000 Detached BERKELEY 5/13/2020 6/4/2020 24 Conventional $1,399,000 $1,500,000 1829 Bancroft Way $1,800,000 Detached BERKELEY 7/10/2020 8/18/2020 39 Conventional $1,680,000 $1,800,000 1829 Monterey Ave $2,548,900 Detached BERKELEY 8/24/2020 10/6/2020 43 Conventional $2,095,000 $2,548,900 1830 Berkeley Way $538,000 Condo BERKELEY 5/22/2020 9/4/2020 105 Conventional $598,000 $538,000 1835 Spruce St $1,625,000 Detached BERKELEY 11/10/2020 1/28/2021 79 Conventional $1,599,000 $1,625,000 1842 Channing Way $201,815 Condo BERKELEY 10/9/2020 12/11/2020 63 Conventional $201,815 $201,815 1849 Shattuck $610,000 Condo BERKELEY 4/17/2020 7/23/2020 97 Conventional $595,000 $610,000 1849 Shattuck Ave $1,510,000 Detached BERKELEY 9/21/2020 12/3/2020 73 Conventional $1,510,000 $1,510,000 185 Hill Road $1,460,000 Detached BERKELEY 10/16/2020 11/13/2020 28 Conventional $1,095,000 $1,460,000 1851 San Pedro Ave $1,245,000 Detached BERKELEY 8/17/2020 9/18/2020 32 Conventional $1,150,000 $1,245,000 1854 San Ramon Ave $1,925,000 Detached BERKELEY 1/22/2020 3/12/2020 49 Conventional $1,949,000 $1,925,000 1887 Tunnel Rd $1,750,000 Detached BERKELEY 3/2/2020 4/14/2020 43 Conventional $1,695,000 $1,750,000 19 Oakvale Ave $1,195,000 Detached BERKELEY 11/4/2020 12/21/2020 47 Conventional $1,195,000 $1,195,000 1905 Virginia St $2,200,000 Detached BERKELEY 9/30/2020 11/10/2020 42 Conventional $1,595,000 $2,200,000 1910 Los Angeles Ave $1,400,000 Detached BERKELEY 8/20/2020 9/17/2020 28 Conventional $1,299,000 $1,400,000 1911 Ninth Street #C $1,375,000 Detached BERKELEY 1/24/2020 2/19/2020 26 Conventional $1,050,000 $1,375,000 1912 California St $1,290,000 Detached BERKELEY 6/25/2020 7/24/2020 29 Conventional $1,095,000 $1,290,000 1914 Vine St $1,350,000 Townhouse BERKELEY 4/29/2020 6/8/2020 40 Conventional $1,325,000 $1,350,000 1919 Milvia St $1,300,000 Detached BERKELEY 2/19/2020 4/21/2020 61 Conventional $1,050,000 $1,300,000 1925 McGee Ave $1,120,000 Detached BERKELEY 2/12/2020 3/27/2020 43 Conventional $899,000 $1,120,000 1931 McGee Ave $1,950,000 Detached BERKELEY 4/30/2020 7/1/2020 63 Conventional $1,795,000 $1,950,000 1933 Yolo Ave $999,999 Detached BERKELEY 9/23/2020 11/6/2020 44 Conventional $979,000 $999,999 1934 Berryman St $1,710,000 Detached BERKELEY 10/8/2020 11/30/2020 53 Conventional $1,599,000 $1,710,000 1956 El Dorado $1,350,000 Detached BERKELEY 9/26/2020 11/10/2020 46 Conventional $1,189,000 $1,350,000 1962 Hopkins St $1,699,000 Detached BERKELEY 9/4/2020 10/16/2020 42 Conventional $1,699,000 $1,699,000 2011 Parker St $1,500,000 Detached BERKELEY 7/10/2020 9/25/2020 77 Conventional $1,275,000 $1,500,000 2012 9Th St

99Page 66 of 167
70 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$1,500,000 Detached BERKELEY 7/10/2020 9/25/2020 77 Conventional $1,275,000 $1,500,000 2012 9th Street $1,450,000 Detached BERKELEY 3/6/2020 4/15/2020 40 Conventional $995,000 $1,450,000 2013 ESSEX St $1,285,000 Detached BERKELEY 9/25/2020 11/19/2020 55 Conventional $925,000 $1,285,000 2014 Acton St $380,000 Condo BERKELEY 1/8/2020 3/4/2020 53 Conventional $395,000 $380,000 2018 9Th St $570,000 Condo BERKELEY 7/23/2020 9/9/2020 48 Conventional $545,000 $570,000 2018 9Th St $1,170,000 Detached BERKELEY 11/24/2020 2/4/2021 72 Conventional $998,000 $1,170,000 2019 Prince St $925,000 Detached BERKELEY 2/22/2020 2/22/2020 0 Conventional $925,000 $925,000 2021 Grant St $206,883 Condo BERKELEY 3/10/2020 7/7/2020 119 Conventional $206,883 $206,883 2029 Channing Way $831,000 Condo BERKELEY 1/22/2020 3/3/2020 40 Conventional $789,000 $831,000 2029 CHANNING WAY $1,325,000 Detached BERKELEY 9/30/2020 11/17/2020 49 Conventional $1,325,000 $1,325,000 2030 6Th St $1,942,000 Detached BERKELEY 10/2/2020 11/13/2020 42 Conventional $1,398,000 $1,942,000 2040 6th Street $1,820,000 Detached BERKELEY 11/18/2020 12/18/2020 30 Conventional $1,495,000 $1,820,000 21 Bonnie Ln $1,750,000 Detached BERKELEY 6/3/2020 7/7/2020 34 Conventional $1,465,000 $1,750,000 21 Menlo Pl $1,306,000 Detached BERKELEY 7/9/2020 7/24/2020 13 Conventional $995,000 $1,306,000 2105 Browning Street $975,000 Detached BERKELEY 10/9/2020 11/12/2020 34 Conventional $879,000 $975,000 2107 Grant St $950,000 Condo BERKELEY 2/3/2020 3/10/2020 33 Conventional $799,000 $950,000 2125 9th Street $1,310,000 Detached BERKELEY 7/23/2020 8/31/2020 39 Conventional $1,200,000 $1,310,000 2125 Oregon St $1,640,000 Detached BERKELEY 12/9/2020 2/8/2021 61 Conventional $1,395,000 $1,640,000 2129-A Ninth St $1,500,000 Detached BERKELEY 12/2/2020 1/25/2021 54 Conventional $1,295,000 $1,500,000 2129-B Ninth $990,000 Detached BERKELEY 12/15/2020 2/10/2021 57 Conventional $1,050,000 $990,000 2131 Channing Way $1,300,000 Detached BERKELEY 6/2/2020 7/2/2020 0 Conventional $1,350,000 $1,300,000 2147 Blake St $1,600,000 Detached BERKELEY 8/27/2020 10/8/2020 41 Conventional $1,499,000 $1,600,000 2200 Marin Ave $1,450,000 Detached BERKELEY 8/26/2020 11/5/2020 40 Conventional $1,500,000 $1,450,000 2201 Eunice St $700,000 Condo BERKELEY 9/4/2020 10/30/2020 56 Conventional $699,000 $700,000 2201 Virginia Street $1,210,000 Detached BERKELEY 3/6/2020 4/15/2020 40 Conventional $925,000 $1,210,000 2205 McGee Ave $1,418,000 Detached BERKELEY 9/4/2020 12/18/2020 105 Conventional $1,350,000 $1,418,000 2209 Glen Avenue $1,500,000 Detached BERKELEY 10/16/2020 1/6/2021 143 Conventional $1,475,000 $1,500,000 2211 Ashby Ave $2,050,000 Detached BERKELEY 10/22/2020 12/7/2020 45 Conventional $1,995,000 $2,050,000 2216 9th Street $1,900,000 Detached BERKELEY 6/1/2020 7/24/2020 43 Conventional $1,699,000 $1,900,000 2228 Carleton St $1,815,000 Detached BERKELEY 10/22/2020 11/24/2020 33 Conventional $1,175,000 $1,815,000 2231 Roosevelt Ave $2,287,500 Detached BERKELEY 1/22/2020 3/25/2020 62 Conventional $2,195,000 $2,287,500 2240 Virginia St $1,110,000 Detached BERKELEY 10/23/2020 12/8/2020 46 Conventional $850,000 $1,110,000 2284 Bonar St $1,288,800 Detached BERKELEY 8/27/2020 9/21/2020 25 Conventional $995,000 $1,288,800 2309 Derby St $1,300,000 Detached BERKELEY 2/12/2020 4/24/2020 38 Conventional $895,000 $1,300,000 2310 Blake St $1,715,000 Detached BERKELEY 9/9/2020 10/13/2020 40 Conventional $1,275,000 $1,715,000 2310 Spaulding Ave

100Page 67 of 167
71 Price Building Type City List Date Closing Date
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Closing Date How Sold List Price Sold Price Address
$1,039,500 Detached BERKELEY 8/13/2020 9/10/2020 28 Conventional $799,000 $1,039,500 2315 Acton Street $1,050,000 Detached BERKELEY 7/6/2020 8/13/2020 38 Conventional $895,000 $1,050,000 2318 Acton St $875,000 Detached BERKELEY 6/10/2020 7/22/2020 42 Conventional $799,000 $875,000 2322 McGee Ave $1,340,000 Detached BERKELEY 6/2/2020 7/9/2020 37 Conventional $895,000 $1,340,000 2324 California St $700,000 Condo BERKELEY 11/12/2020 12/18/2020 36 Conventional $625,000 $700,000 2325 Webster St $638,000 Condo BERKELEY 2/4/2020 3/5/2020 29 Conventional $585,000 $638,000 2327 10Th St $869,000 Condo BERKELEY 5/27/2020 7/1/2020 35 Conventional $685,000 $869,000 2333 10th Street $2,000,000 Detached BERKELEY 5/29/2020 8/12/2020 75 Conventional $1,899,000 $2,000,000 2334 Corona Ct $1,130,000 Detached BERKELEY 8/17/2020 9/25/2020 39 Conventional $895,000 $1,130,000 2337 Mckinley Ave $1,600,000 Detached BERKELEY 9/17/2020 10/21/2020 34 Conventional $1,195,000 $1,600,000 2341 Roosevelt Avenue $1,725,000 Detached BERKELEY 9/25/2020 10/30/2020 35 Conventional $1,695,000 $1,725,000 2357 Le Conte Ave $1,085,000 Detached BERKELEY 4/1/2020 5/8/2020 38 Conventional $999,888 $1,085,000 2360 WEST STREET $997,000 Detached BERKELEY 7/6/2020 8/20/2020 45 Conventional $799,000 $997,000 2410 Prince St $1,360,000 Detached BERKELEY 2/5/2020 3/17/2020 38 Conventional $1,100,000 $1,360,000 2412 Woolsey $1,350,000 Detached BERKELEY 10/2/2020 11/20/2020 49 Conventional $1,195,000 $1,350,000 2413A 5th St. $1,080,000 Detached BERKELEY 2/19/2020 3/25/2020 34 Conventional $875,000 $1,080,000 2424 Edwards St $960,000 Detached BERKELEY 12/11/2020 1/29/2021 49 Conventional $949,000 $960,000 2425 7Th St $1,015,000 Detached BERKELEY 9/3/2020 10/6/2020 23 Conventional $925,000 $1,015,000 2427 Browning St $930,000 Loft BERKELEY 3/26/2020 5/11/2020 46 Conventional $930,000 $930,000 2430 5Th St $1,330,000 Detached BERKELEY 4/24/2020 5/29/2020 35 Conventional $998,000 $1,330,000 2437 Roosevelt Avenue $1,030,000 Detached BERKELEY 7/27/2020 8/28/2020 32 Conventional $795,000 $1,030,000 2444 Acton St $1,400,000 Detached BERKELEY 9/11/2020 10/9/2020 28 Conventional $1,095,000 $1,400,000 2445 Edwards $1,200,000 Detached BERKELEY 8/28/2020 10/8/2020 41 Conventional $995,000 $1,200,000 2448 Acton St $1,575,000 Detached BERKELEY 10/8/2020 11/30/2020 51 Conventional $1,295,000 $1,575,000 2450 West St $900,000 Condo BERKELEY 4/22/2020 5/29/2020 37 Conventional $895,000 $900,000 2461 Hilgard Ave $1,650,000 Detached BERKELEY 3/11/2020 4/17/2020 37 Conventional $1,250,000 $1,650,000 2473 Prince St $762,000 Condo BERKELEY 4/15/2020 5/14/2020 29 Conventional $750,000 $762,000 2476 Martin Luther King Jr Way $1,675,000 Detached BERKELEY 9/4/2020 10/15/2020 31 Conventional $1,425,000 $1,675,000 2497 Valley St $1,250,000 Detached BERKELEY 9/9/2020 10/26/2020 47 Conventional $1,099,000 $1,250,000 25 Senior Ave $1,500,000 Detached BERKELEY 3/4/2020 4/16/2020 34 Conventional $1,295,000 $1,500,000 2500 Prince St $1,410,000 Detached BERKELEY 8/18/2020 10/20/2020 63 Conventional $849,000 $1,410,000 2508 Dana St $2,100,000 Detached BERKELEY 2/12/2020 4/14/2020 30 Conventional $1,795,000 $2,100,000 2509 Stuart St $765,000 Condo BERKELEY 2/13/2020 4/1/2020 47 Conventional $750,000 $765,000 2525 Ashby Ave. $675,000 Condo BERKELEY 6/22/2020 7/17/2020 25 Conventional $629,000 $675,000 2527 College Ave $910,000 Detached BERKELEY 9/10/2020 10/23/2020 43 Conventional $789,000 $910,000 2540 California St

101Page 68 of 167
72 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$1,025,000 Detached BERKELEY 1/22/2020 2/25/2020 34 Conventional $795,000 $1,025,000 2543 Chilton Way $295,000 Condo BERKELEY 3/16/2020 8/26/2020 163 Conventional $295,000 $295,000 2550 Dana St $1,350,000 Detached BERKELEY 4/1/2020 6/10/2020 70 Conventional $1,350,000 $1,350,000 2582 Marin Ave $740,000 Condo BERKELEY 8/7/2020 9/11/2020 35 Conventional $675,000 $740,000 2587 Piedmont Ave $2,250,000 Detached BERKELEY 9/25/2020 2/10/2021 138 Conventional $2,350,000 $2,250,000 260 Gravatt Drive $3,100,000 Detached BERKELEY 7/16/2020 10/7/2020 83 Conventional $3,199,000 $3,100,000 2601 Derby St $1,055,000 Detached BERKELEY 1/22/2020 2/24/2020 33 Conventional $879,000 $1,055,000 2609 Mathews Street $1,305,000 Detached BERKELEY 10/12/2020 11/18/2020 37 Conventional $849,000 $1,305,000 2614 Acton St $1,243,000 Detached BERKELEY 8/13/2020 9/18/2020 36 Conventional $1,195,000 $1,243,000 2614 Benvenue Ave $1,305,000 Detached BERKELEY 6/12/2020 8/31/2020 80 Conventional $1,195,000 $1,305,000 2625 Grant St $775,000 Condo BERKELEY 11/19/2020 1/22/2021 64 Conventional $789,000 $775,000 2628 Telegraph Ave $1,460,000 Detached BERKELEY 9/9/2020 10/23/2020 44 Conventional $1,125,000 $1,460,000 2629 Mabel St $660,000 Condo BERKELEY 5/26/2020 6/26/2020 31 Conventional $645,000 $660,000 2638 Russell $720,000 Condo BERKELEY 5/29/2020 7/7/2020 39 Conventional $655,000 $720,000 2638 Russell St $550,000 Condo BERKELEY 11/18/2020 1/15/2021 58 Conventional $558,000 $550,000 2641 Webster St $655,000 Condo BERKELEY 8/28/2020 10/30/2020 63 Conventional $589,000 $655,000 2649 San Pablo Ave $1,693,000 Detached BERKELEY 5/20/2020 7/17/2020 58 Conventional $1,689,000 $1,693,000 268 Gravatt Dr $1,015,000 Condo BERKELEY 10/1/2020 12/8/2020 68 Conventional $1,015,000 $1,015,000 2700 8Th St $745,000 Condo BERKELEY 1/7/2021 2/9/2021 33 Conventional $675,000 $745,000 2700 Le Conte Ave $1,671,000 Detached BERKELEY 2/19/2020 4/2/2020 40 Conventional $1,249,000 $1,671,000 2711 Shasta Rd $800,000 Condo BERKELEY 12/18/2020 2/2/2021 46 Conventional $695,000 $800,000 2711 Virginia Street $1,130,000 Detached BERKELEY 10/16/2020 12/2/2020 47 Conventional $895,000 $1,130,000 2720 Acton St $555,000 Condo BERKELEY 9/9/2020 1/22/2021 135 Conventional $575,000 $555,000 2725 Prince St $455,000 Detached BERKELEY 2/13/2020 2/27/2020 14 Conventional $399,000 $455,000 2727 San Pablo Ave $2,020,606 Detached BERKELEY 8/24/2020 10/6/2020 43 Conventional $1,499,000 $2,020,606 2731 Hillegass Ave $2,050,000 Detached BERKELEY 10/1/2020 10/26/2020 25 Conventional $1,895,000 $2,050,000 2740 Prince St $2,860,000 Detached BERKELEY 9/25/2020 11/3/2020 39 Conventional $2,595,000 $2,860,000 2741 Webster St $1,165,000 Detached BERKELEY 5/1/2020 5/27/2020 26 Conventional $879,000 $1,165,000 2742 Wallace St $890,000 Condo BERKELEY 5/19/2020 11/25/2020 190 Conventional $899,000 $890,000 2747 San Pablo Ave $620,000 Condo BERKELEY 6/2/2020 8/26/2020 85 Conventional $649,000 $620,000 2747 San Pablo Ave $555,000 Condo BERKELEY 3/6/2020 6/24/2020 110 Conventional $569,000 $555,000 2747 San Pablo Ave $650,000 Condo BERKELEY 8/1/2020 10/22/2020 82 Conventional $659,000 $650,000 2747 San Pablo Ave $660,000 Condo BERKELEY 3/13/2020 7/15/2020 124 Conventional $679,000 $660,000 2747 San Pablo Ave $859,000 Condo BERKELEY 2/16/2020 5/19/2020 92 Conventional $859,000 $859,000 2747 San Pablo Ave $909,000 Condo BERKELEY 7/31/2020 10/22/2020 54 Conventional $939,000 $909,000 2747 San Pablo Ave

102Page 69 of 167
73 Price Building Type City List Date Closing Date
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Closing Date How Sold List Price Sold Price Address
$679,000 Condo BERKELEY 3/1/2020 6/2/2020 101 Conventional $679,000 $679,000 2747 San Pablo Ave $603,400 Condo BERKELEY 2/16/2020 5/29/2020 102 Conventional $599,000 $603,400 2747 San Pablo Ave $970,000 Detached BERKELEY 4/22/2020 6/9/2020 48 Conventional $848,000 $970,000 2759 Wallace St $1,625,000 Detached BERKELEY 6/18/2020 7/21/2020 33 Conventional $1,650,000 $1,625,000 2774 Shasta Rd $800,000 Detached BERKELEY 12/1/2020 1/29/2021 58 Conventional $799,000 $800,000 2795 San Pablo Ave $1,050,000 Detached BERKELEY 7/6/2020 8/7/2020 32 Conventional $1,050,000 $1,050,000 28 Hopkins Ct $855,000 Condo BERKELEY 9/16/2020 1/7/2021 113 Conventional $855,000 $855,000 2804 Hillegass Ave $1,225,000 Detached BERKELEY 3/15/2020 5/5/2020 46 Conventional $999,900 $1,225,000 2809 California St $2,056,000 Detached BERKELEY 8/3/2020 9/11/2020 39 Conventional $1,695,000 $2,056,000 2810 Fulton St $767,000 Condo BERKELEY 7/11/2020 9/28/2020 79 Conventional $699,000 $767,000 2814 Hillegass Ave $1,033,500 Detached BERKELEY 3/6/2020 4/14/2020 39 Conventional $899,000 $1,033,500 2832 Milvia St $1,780,000 Detached BERKELEY 12/3/2020 1/8/2021 36 Conventional $1,295,000 $1,780,000 2835 Ashby Ave $658,000 Condo BERKELEY 6/28/2020 7/28/2020 30 Conventional $650,000 $658,000 2842 Woolsey St $1,530,000 Detached BERKELEY 7/3/2020 8/10/2020 38 Conventional $1,249,000 $1,530,000 2845 Buena Vista Way $2,015,000 Detached BERKELEY 10/24/2020 2/12/2021 111 Conventional $2,185,000 $2,015,000 2848 Derby St $2,545,000 Detached BERKELEY 7/14/2020 10/28/2020 106 Conventional $2,545,000 $2,545,000 285 The Uplands $2,925,000 Detached BERKELEY 9/9/2020 10/5/2020 26 Conventional $2,699,000 $2,925,000 2905 Garber St $2,300,000 Detached BERKELEY 1/22/2020 2/27/2020 32 Conventional $1,895,000 $2,300,000 2917 Avalon Ave $800,000 Detached BERKELEY 6/6/2020 7/27/2020 41 Conventional $725,000 $800,000 2921 Acton St $3,000,000 Detached BERKELEY 10/8/2020 1/29/2021 103 Conventional $2,950,000 $3,000,000 2927 Garber Street $2,405,000 Detached BERKELEY 9/9/2020 10/13/2020 34 Conventional $1,995,000 $2,405,000 2928 Derby St $2,600,000 Detached BERKELEY 5/8/2020 8/7/2020 81 Conventional $2,695,000 $2,600,000 2931 PIEDMONT AVENUE $830,000 Detached BERKELEY 9/13/2020 12/4/2020 113 Conventional $894,000 $830,000 2935 Acton Street $1,610,000 Detached BERKELEY 6/7/2020 7/16/2020 39 Conventional $1,250,000 $1,610,000 2936 Ellsworth St $4,100,000 Detached BERKELEY 10/15/2020 12/3/2020 49 Conventional $3,830,000 $4,100,000 2946 Avalon Ave $2,925,000 Detached BERKELEY 7/28/2020 9/8/2020 11 Conventional $2,695,000 $2,925,000 2946 Russell St $2,555,000 Detached BERKELEY 10/30/2020 12/10/2020 41 Conventional $1,950,000 $2,555,000 2950 Russell St $2,050,000 Detached BERKELEY 3/11/2020 5/22/2020 72 Conventional $1,999,000 $2,050,000 2951 Ashby Ave $2,160,000 Detached BERKELEY 9/18/2020 11/10/2020 53 Conventional $1,800,000 $2,160,000 30 Alvarado Pl $2,250,000 Detached BERKELEY 7/15/2020 8/25/2020 36 Conventional $1,850,000 $2,250,000 30 El Camino Real $1,000,000 Detached BERKELEY 5/14/2020 6/19/2020 36 Conventional $949,000 $1,000,000 3008 Dohr Street $1,597,000 Detached BERKELEY 4/8/2020 8/20/2020 134 Conventional $1,595,000 $1,597,000 3025 Claremont Ave $1,950,000 Detached BERKELEY 8/28/2020 10/21/2020 54 Conventional $1,695,000 $1,950,000 3026 Deakin St $2,450,000 Detached BERKELEY 6/24/2020 7/24/2020 30 Conventional $1,995,000 $2,450,000 3026 Hillegass Ave $1,300,000 Detached BERKELEY 6/12/2020 7/31/2020 49 Conventional $1,299,000 $1,300,000 3026 Martin Luther King Jr Way

103Page 70 of 167
74 Price Building Type City List Date Closing Date
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Closing Date How Sold List Price Sold Price Address
$1,650,000 Detached BERKELEY 1/15/2020 2/25/2020 41 Conventional $1,250,000 $1,650,000 3034 Acton Street $1,805,000 Detached BERKELEY 5/20/2020 7/13/2020 54 Conventional $1,749,000 $1,805,000 3036 College Ave $926,000 Condo BERKELEY 10/21/2020 11/23/2020 33 Conventional $789,000 $926,000 3040 College Ave $1,200,000 Condo BERKELEY 9/8/2020 11/10/2020 63 Conventional $1,200,000 $1,200,000 3046 Telegraph Ave $1,125,000 Detached BERKELEY 10/9/2020 11/13/2020 35 Conventional $979,000 $1,125,000 3108 King St $560,000 Condo BERKELEY 9/8/2020 12/7/2020 90 Conventional $575,000 $560,000 3113 Shattuck Ave $702,500 Condo BERKELEY 6/5/2020 7/16/2020 41 Conventional $685,000 $702,500 3117 College Ave $920,000 Detached BERKELEY 2/4/2020 6/25/2020 141 Conventional $999,888 $920,000 3140 Sacramento St $830,000 Condo BERKELEY 9/23/2020 11/4/2020 42 Conventional $775,000 $830,000 3154 College Ave $1,475,000 Detached BERKELEY 11/11/2020 1/26/2021 76 Conventional $1,098,000 $1,475,000 3336 King St $985,000 Detached BERKELEY 7/25/2020 8/28/2020 34 Conventional $949,000 $985,000 3409 California St $1,225,000 Detached BERKELEY 9/16/2020 12/17/2020 92 Conventional $1,250,000 $1,225,000 350 Panoramic Way $1,350,000 Detached BERKELEY 10/5/2020 12/1/2020 57 Conventional $969,000 $1,350,000 3541 Dwight Way $2,600,000 Detached BERKELEY 9/24/2020 11/4/2020 41 Conventional $2,795,000 $2,600,000 40 Brookside Avenue $1,800,000 Detached BERKELEY 10/31/2020 12/8/2020 38 Conventional $1,695,000 $1,800,000 42 Somerset Place $1,400,000 Detached BERKELEY 10/23/2020 12/7/2020 45 Conventional $1,100,000 $1,400,000 43 Slater Ln $1,175,000 Detached BERKELEY 5/29/2020 8/12/2020 75 Conventional $1,175,000 $1,175,000 433 Michigan Ave $2,225,000 Detached BERKELEY 8/5/2020 9/10/2020 36 Conventional $1,995,000 $2,225,000 45 Alvarado Rd $1,400,000 Detached BERKELEY 6/1/2020 7/1/2020 0 Conventional $1,300,000 $1,400,000 480 Cragmont Ave $1,535,000 Detached BERKELEY 8/5/2020 9/21/2020 47 Conventional $1,249,000 $1,535,000 484 Cragmont Ave $1,605,000 Detached BERKELEY 1/13/2020 3/19/2020 65 Conventional $1,495,000 $1,605,000 488 Spruce St $1,750,000 Detached BERKELEY 1/31/2020 3/17/2020 46 Conventional $1,375,000 $1,750,000 5 Maybeck Twin Dr $1,225,000 Detached BERKELEY 4/18/2020 5/22/2020 34 Conventional $1,450,000 $1,225,000 50 ALTA ROAD $2,575,000 Detached BERKELEY 5/29/2020 8/6/2020 68 Conventional $2,590,000 $2,575,000 51 Vicente Rd $1,750,000 Detached BERKELEY 7/30/2020 12/30/2020 153 Conventional $1,795,000 $1,750,000 514 Grizzly Peak Blvd $2,500,000 Detached BERKELEY 11/20/2020 12/18/2020 28 Conventional $1,875,000 $2,500,000 515 Boynton Ave $1,610,000 Detached BERKELEY 8/27/2020 10/2/2020 36 Conventional $1,425,000 $1,610,000 52 The Crescent $2,225,000 Detached BERKELEY 9/12/2020 10/20/2020 38 Conventional $2,195,000 $2,225,000 520 Cragmont Ave $1,456,000 Detached BERKELEY 10/8/2020 11/16/2020 39 Conventional $1,050,000 $1,456,000 57 Evergreen Ln $1,700,000 Detached BERKELEY 8/3/2020 9/9/2020 37 Conventional $1,695,000 $1,700,000 57 Tunnel $1,250,000 Detached BERKELEY 3/12/2020 4/10/2020 29 Conventional $1,125,000 $1,250,000 587 Arlington Ave $2,050,000 Detached BERKELEY 11/6/2020 12/14/2020 38 Conventional $1,995,000 $2,050,000 590 Cragmont Ave $1,493,600 Detached BERKELEY 9/1/2020 10/20/2020 50 Conventional $1,295,000 $1,493,600 596 Grizzly Peak Blvd $2,595,000 Detached BERKELEY 5/4/2020 9/25/2020 144 Conventional $2,595,000 $2,595,000 6 Nogales St $2,340,000 Detached BERKELEY 7/23/2020 8/25/2020 33 Conventional $1,900,000 $2,340,000 6 Vallejo St

104Page 71 of 167
75 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$1,526,000 Detached BERKELEY 4/28/2020 5/29/2020 31 Conventional $1,175,000 $1,526,000 614 Grizzly Peak Blvd $2,025,000 Detached BERKELEY 9/3/2020 9/29/2020 26 Conventional $1,795,000 $2,025,000 621 San Luis Rd $1,923,000 Detached BERKELEY 10/14/2020 11/20/2020 35 Conventional $1,798,000 $1,923,000 633 San Luis Road $3,200,000 Detached BERKELEY 5/12/2020 7/24/2020 73 Conventional $3,450,000 $3,200,000 636 Wildcat Canyon Rd $1,300,000 Detached BERKELEY 7/7/2020 8/12/2020 36 Conventional $1,065,000 $1,300,000 644 Vincente Ave $1,430,000 Detached BERKELEY 5/8/2020 6/12/2020 35 Conventional $1,395,000 $1,430,000 646 Vincente Ave $2,200,000 Detached BERKELEY 7/1/2020 8/6/2020 37 Conventional $2,100,000 $2,200,000 65 Arden Rd $950,000 Detached BERKELEY 6/6/2020 7/30/2020 54 Conventional $995,000 $950,000 656 Woodmont Ave $2,050,000 Detached BERKELEY 10/14/2020 12/3/2020 50 Conventional $1,995,000 $2,050,000 671 Spruce St $1,650,000 Detached BERKELEY 7/22/2020 9/8/2020 48 Conventional $1,625,000 $1,650,000 672 Cragmont Ave $1,650,000 Detached BERKELEY 8/28/2020 10/6/2020 39 Conventional $1,595,000 $1,650,000 6722 Charing Cross Road $1,100,000 Detached BERKELEY 4/22/2020 6/10/2020 49 Conventional $850,000 $1,100,000 6801 Sherwick Dr $1,500,000 Detached BERKELEY 7/29/2020 10/5/2020 68 Conventional $1,395,000 $1,500,000 6865 Bristol Dr $1,929,000 Detached BERKELEY 10/1/2020 1/11/2021 102 Conventional $1,929,000 $1,929,000 6874 Buckingham Blvd $1,500,000 Detached BERKELEY 11/6/2019 8/28/2020 295 Conventional $1,549,000 $1,500,000 6880 Buckingham Blvd $2,400,000 Detached BERKELEY 7/21/2020 8/21/2020 31 Conventional $2,195,000 $2,400,000 690 Euclid Ave $2,250,000 Detached BERKELEY 4/3/2020 7/14/2020 102 Conventional $2,350,000 $2,250,000 6907 NORFOLK ROAD $1,147,500 Detached BERKELEY 3/4/2020 4/7/2020 34 Conventional $1,175,000 $1,147,500 6911 Norfolk Rd $1,309,000 Detached BERKELEY 9/3/2020 11/18/2020 66 Conventional $1,049,000 $1,309,000 6920 Bristol Dr $1,451,000 Detached BERKELEY 8/20/2020 10/1/2020 42 Conventional $995,000 $1,451,000 6937 Bristol Drive $1,350,000 Detached BERKELEY 2/3/2020 6/12/2020 129 Conventional $1,400,000 $1,350,000 6939 Charing Cross Rd $1,395,000 Detached BERKELEY 12/23/2020 1/22/2021 0 Conventional $1,395,000 $1,395,000 6940 CHARING CROSS ROAD $1,600,000 Detached BERKELEY 7/17/2020 8/27/2020 41 Conventional $1,395,000 $1,600,000 6963 Buckingham Blvd $1,685,000 Detached BERKELEY 7/28/2020 8/31/2020 34 Conventional $1,345,000 $1,685,000 6967 Buckingham Blvd $1,395,000 Detached BERKELEY 4/15/2020 5/22/2020 37 Conventional $1,350,000 $1,395,000 697 Arlington Ave $1,800,000 Detached BERKELEY 8/28/2020 9/30/2020 33 Conventional $1,790,000 $1,800,000 6976 Buckingham Blvd $2,900,000 Detached BERKELEY 3/13/2020 5/28/2020 76 Conventional $2,995,000 $2,900,000 710 Spruce St $1,850,000 Detached BERKELEY 5/5/2020 6/12/2020 38 Conventional $1,795,000 $1,850,000 7133 Norfolk Road $2,705,000 Detached BERKELEY 6/5/2020 7/9/2020 26 Conventional $2,350,000 $2,705,000 715 The Alameda $1,145,000 Detached BERKELEY 10/19/2020 12/15/2020 57 Conventional $1,145,000 $1,145,000 7157 Buckingham Blvd $1,750,000 Detached BERKELEY 8/7/2020 12/4/2020 119 Conventional $1,788,000 $1,750,000 7287 Claremont Avenue #2628 $1,405,000 Detached BERKELEY 9/2/2020 10/14/2020 32 Conventional $1,295,000 $1,405,000 737 Spruce St $2,000,000 Detached BERKELEY 9/17/2020 9/21/2020 4 Conventional $1,995,000 $2,000,000 742 Cragmont Ave $1,050,000 Detached BERKELEY 1/8/2020 2/19/2020 42 Conventional $850,000 $1,050,000 75 Whitaker Ave $1,500,000 Detached BERKELEY 4/6/2020 5/12/2020 36 Conventional $1,550,000 $1,500,000 76 Codornices Rd

105Page 72 of 167
76 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$950,000 Condo BERKELEY 5/14/2020 6/26/2020 44 Conventional $850,000 $950,000 77 Panoramic Way $1,250,000 Detached BERKELEY 6/3/2020 7/7/2020 34 Conventional $1,250,000 $1,250,000 770 Grizzly Peak Boulevard $1,810,000 Detached BERKELEY 3/9/2020 6/24/2020 107 Conventional $1,750,000 $1,810,000 771 San Diego Rd $1,250,000 Detached BERKELEY 4/30/2020 6/5/2020 37 Conventional $995,000 $1,250,000 778 Peralta $1,175,000 Detached BERKELEY 4/15/2020 6/22/2020 68 Conventional $1,225,000 $1,175,000 779 Spruce St $1,241,237 Detached BERKELEY 1/21/2020 2/25/2020 35 Conventional $995,000 $1,241,237 780 Creston Rd $650,000 Condo BERKELEY 11/18/2020 12/18/2020 30 Conventional $585,000 $650,000 807 Delaware Street $1,410,000 Detached BERKELEY 7/28/2020 9/11/2020 45 Conventional $1,249,000 $1,410,000 809 Cragmont Ave $1,600,000 Detached BERKELEY 9/14/2020 11/13/2020 60 Conventional $1,650,000 $1,600,000 811 Channing Way $2,260,000 Detached BERKELEY 5/20/2020 6/19/2020 30 Conventional $2,400,000 $2,260,000 815 San Luis Rd $1,200,000 Detached BERKELEY 5/4/2020 7/10/2020 67 Conventional $1,195,000 $1,200,000 821 Indian Rock Ave. $1,720,000 Detached BERKELEY 4/16/2020 5/12/2020 26 Conventional $1,659,000 $1,720,000 829 Regal Road $960,000 Detached BERKELEY 9/4/2020 10/16/2020 42 Conventional $988,000 $960,000 833 Keeler Ave $1,055,000 Detached BERKELEY 6/10/2020 7/14/2020 34 Conventional $825,000 $1,055,000 842 Page St $1,230,000 Detached BERKELEY 6/4/2020 7/7/2020 34 Conventional $995,000 $1,230,000 844 Page St $620,000 Condo BERKELEY 5/8/2020 5/8/2020 0 Conventional $620,000 $620,000 845 Dwight Crescent $2,155,000 Detached BERKELEY 9/30/2020 11/23/2020 54 Conventional $1,590,000 $2,155,000 889 Creston Rd $1,700,000 Detached BERKELEY 6/19/2020 9/2/2020 75 Conventional $1,750,000 $1,700,000 89 San Mateo Rd $2,008,000 Detached BERKELEY 9/17/2020 10/30/2020 43 Conventional $1,595,000 $2,008,000 9 Greenwood Common $1,825,000 Detached BERKELEY 10/17/2020 11/25/2020 39 Conventional $1,649,000 $1,825,000 9 Maybeck Twin Drive $1,250,000 Detached BERKELEY 4/7/2020 5/8/2020 31 Conventional $1,250,000 $1,250,000 900 Keeler Ave $905,000 Detached BERKELEY 10/20/2020 12/14/2020 56 Conventional $875,000 $905,000 906 Bataan Ave $2,715,000 Detached BERKELEY 6/25/2020 7/22/2020 27 Conventional $2,695,000 $2,715,000 906 Indian Rock Ave $1,625,000 Detached BERKELEY 7/27/2020 7/27/2020 0 Conventional $1,625,000 $1,625,000 912 Cedar St. $1,155,000 Detached BERKELEY 3/11/2020 4/8/2020 23 Conventional $1,059,000 $1,155,000 913 Allston Way $1,495,000 Detached BERKELEY 6/1/2020 7/17/2020 46 Conventional $1,495,000 $1,495,000 914 Cedar St. $1,450,000 Detached BERKELEY 3/20/2020 4/22/2020 33 Conventional $1,400,000 $1,450,000 923 Euclid Ave $380,000 Condo BERKELEY 11/1/2019 4/20/2020 180 Conventional $385,000 $380,000 933 Addison St $1,900,000 Detached BERKELEY 6/26/2020 8/7/2020 42 Conventional $1,800,000 $1,900,000 954 Grizzly Peak Blvd $1,500,000 Detached BERKELEY 3/2/2020 4/7/2020 36 Conventional $1,295,000 $1,500,000 954 Keeler Ave $1,450,000 Detached BERKELEY 5/21/2020 5/21/2020 0 Conventional $1,400,000 $1,450,000 955 Creston Rd $2,100,000 Detached BERKELEY 9/3/2020 9/30/2020 27 Conventional $1,795,000 $2,100,000 956 Spruce St $1,286,000 Detached BERKELEY 10/8/2020 11/18/2020 31 Conventional $1,395,000 $1,286,000 962 Cragmont Ave $1,500,000 Detached BERKELEY 11/5/2020 12/30/2020 55 Conventional $995,000 $1,500,000 963 Shattuck Ave $1,040,000 Detached BERKELEY 7/31/2020 9/15/2020 47 Conventional $899,000 $1,040,000 970 Page Street

106Page 73 of 167
77 Price Building Type City List Date Closing Date
List date to
Closing Date How Sold List Price Sold Price Address
$850,000 Detached BERKELEY 5/27/2020 7/6/2020 40 Conventional $749,000 $850,000 977 Keeler Ave $1,350,000 Detached BERKELEY 3/4/2020 5/8/2020 65 Conventional $1,395,000 $1,350,000 99 Codornices Rd $711,000 Detached BERKELEY 1/17/2020 4/9/2020 82 FHA $649,000 $711,000 1034 Dwight Way $876,000 Detached BERKELEY 7/26/2020 8/19/2020 0 FHA $799,000 $876,000 1165 Virginia Street $2,100,000 Detached BERKELEY 10/24/2020 12/15/2020 51 Other $1,970,000 $2,100,000 1040 E AMITO Drive $760,776 Detached BERKELEY 10/28/2020 11/13/2020 16 Other $599,950 $760,776 1417 Northside Ave $2,800,000 Detached BERKELEY 1/6/2020 3/27/2020 80 Other $2,830,000 $2,800,000 1538 Grand View $4,875,000 Detached BERKELEY 9/21/2016 10/20/2020 1489 Other $5,995,000 $4,875,000 1960 San Antonio Avenue $1,479,000 Detached BERKELEY 7/26/2019 3/3/2020 220 Other $1,495,000 $1,479,000 1985 Tunnel Rd $736,000 Detached BERKELEY 12/5/2019 5/29/2020 20 Other $700,000 $736,000 2329 Acton Street $915,000 Detached BERKELEY 8/31/2020 10/15/2020 46 Other $948,000 $915,000 430 Arlington Ave $1,166,000 Detached BERKELEY 7/22/2020 8/14/2020 23 Private $1,095,000 $1,166,000 2310 Haste St $1,425,000 Detached BERKELEY 9/10/2020 12/31/2020 112 VA $1,349,000 $1,425,000 1098 keith Ave $950,000 Detached BERKELEY 12/16/2020 2/11/2021 57 VA $950,000 $950,000 1516 Alcatraz Ave $379,000 Condo BERKELEY 7/22/2020 11/4/2020 105 VA $379,000 $379,000 1806 8th St $649,000 Condo BERKELEY 7/22/2020 10/7/2020 77 $649,000 $649,000 2747 San Pablo Avenue 52

107Page 74 of 167
78 Building Type
Cumulative
DOMLS
Days On
Market
Days On
MLS How Sold List Date
Pending
Date Closing Date
Days listed
to close List Price Sold Price
Tot # of
Units Address
2HOUSES-1LOT 46 46 46 Cash 10/23/2020 12/8/2020 12/31/2020 69 $1,549,000 $1,414,662 1823 Fairview St 44 2HOUSES-1LOT 11 11 11 Cash 12/10/2020 12/21/2020 2/9/2021 61 $1,495,000 $1,750,000 2730 10Th St 2HOUSES-1LOT 14 14 14 Conventional 7/3/2020 7/21/2020 8/26/2020 54 $1,375,000 $1,500,000 1135 Delaware St 2HOUSES-1LOT 62 62 62 Conventional 4/6/2020 6/7/2020 7/9/2020 94 $1,895,000 $1,830,000 1157 Oxford Street 2HOUSES-1LOT 21 21 21 Conventional 11/4/2020 11/25/2020 12/21/2020 47 $1,195,000 $1,195,000 1905 Virginia St 2HOUSES-1LOT 69 41 41 Conventional 9/22/2020 11/2/2020 12/3/2020 72 $1,420,000 $1,420,000 2133 Spaulding Ave 2HOUSES-1LOT 44 6 44 Conventional 12/4/2020 12/16/2020 12/24/2020 20 $1,600,000 $1,600,000 2610 Russell St 2HOUSES-1LOT 18 18 18 Conventional 1/17/2020 2/4/2020 2/25/2020 39 $1,250,000 $1,650,000 3036 Acton St 2HOUSES-1LOT 37 37 37 Other 11/13/2019 12/20/2019 3/27/2020 75 $599,000 $500,000 1120 ADDISON Street 5 plus 27 27 27 Cash 6/30/2020 7/27/2020 8/14/2020 45 $2,050,000 $1,950,000 7 1327 Hopkins 5 Plus 8 8 8 Cash 10/15/2020 10/23/2020 12/4/2020 50 $799,000 $878,475 6 1357 Hopkins St 5 plus 189 189 189 Cash 9/13/2019 3/20/2020 3/26/2020 194 $1,500,000 $1,025,000 5 1616 Prince St 96 5 plus 27 27 27 Cash 8/12/2020 9/8/2020 9/25/2020 44 $1,795,000 $1,700,000 7 2021 Vine St 5 plus 15 15 15 Cash 1/22/2020 2/6/2020 3/24/2020 61 $2,100,000 $2,200,000 8 2421 Webster Street 5 plus 21 21 21 Conventional 9/13/2019 10/4/2019 2/26/2020 166 $5,850,000 $5,667,500 11 1444 Walnut St 5 plus 53 53 53 Conventional 3/2/2020 4/24/2020 6/19/2020 109 $1,950,000 $1,750,000 6 1522 Prince St 5 plus 81 81 81 Conventional 11/9/2019 1/29/2020 3/20/2020 141 $4,849,000 $4,750,000 15 2339 Hilgard 5 plus 26 26 26 Conventional 3/5/2020 3/31/2020 7/15/2020 132 $4,950,000 $4,600,000 12 3110 College Avenue 5 plus 57 57 57 Conventional 6/18/2020 8/14/2020 8/31/2020 74 $1,650,000 $1,640,000 6 3205 California St 5 plus 21 20 21 Private 1/8/2021 1/28/2021 2/11/2021 34 $1,599,000 $2,005,000 6 2511 Virginia Street DUPLEX 56 56 56 Cash 4/20/2020 7/15/2020 9/4/2020 137 $1,100,000 $965,000 1333 Santa Fe Ave DUPLEX 11 11 11 Cash 8/19/2020 8/30/2020 9/9/2020 21 $1,385,000 $1,600,000 1633 62nd Street DUPLEX 28 17 28 Cash 9/18/2020 10/5/2020 11/5/2020 48 $950,000 $1,030,000 1725 Berkeley Way DUPLEX 10 10 10 Cash 8/10/2020 8/20/2020 9/4/2020 25 $1,295,000 $1,312,500 2332 Virginia St DUPLEX 13 13 13 Cash 2/5/2020 2/18/2020 3/2/2020 25 $1,315,000 $1,776,000 2433 Browning St DUPLEX 19 19 19 Cash 6/4/2020 6/23/2020 7/10/2020 36 $1,499,000 $1,513,637 2610 College Ave DUPLEX 10 9 10 Cash 7/30/2020 8/8/2020 8/14/2020 15 $800,000 $1,350,000 2809 Fulton DUPLEX 31 30 31 Cash 12/12/2020 1/11/2021 2/8/2021 58 $1,800,000 $1,650,000 2027 Delaware St DUPLEX 13 13 13 Conventional 2/12/2020 2/25/2020 3/17/2020 43 $850,000 $1,100,000 1110 Chaucer St DUPLEX 60 60 60 Conventional 9/6/2019 6/20/2020 7/17/2020 314 $2,000,000 $2,000,000 1150 Arch St DUPLEX 13 13 13 Conventional 6/2/2020 6/15/2020 7/24/2020 52 $1,025,000 $1,270,000 1303 McGee Ave DUPLEX 8 0 8 Conventional 11/13/2020 11/13/2020 12/10/2020 37 $1,249,000 $1,249,000 1310 Delaware St DUPLEX 12 12 12 Conventional 4/23/2020 5/5/2020 5/18/2020 25 $999,000 $1,100,000 1362 Hopkins St DUPLEX 15 15 15 Conventional 1/22/2020 2/6/2020 3/5/2020 42 $1,190,000 $1,650,000 1468 Stannage Avenue DUPLEX 13 13 13 Conventional 6/19/2020 7/8/2020 7/31/2020 42 $925,000 $925,000 1505 Berkeley Way DUPLEX 21 21 21 Conventional 11/21/2020 12/12/2020 1/12/2021 53 $1,499,000 $1,500,000 1536 62nd St DUPLEX 8 8 8 Conventional 9/6/2020 9/14/2020 10/7/2020 31 $998,000 $1,130,000 1538 Harmon Street DUPLEX 12 12 12 Conventional 11/18/2020 11/30/2020 12/30/2020 42 $1,398,000 $1,415,000 1607 5Th St DUPLEX 6 6 6 Conventional 5/12/2020 5/18/2020 6/17/2020 36 $1,895,000 $1,925,000 1609 Visalia DUPLEX 3 2 3 Conventional 3/20/2020 3/22/2020 5/6/2020 45 $1,549,000 $1,780,000 1631 Fairview St DUPLEX 15 15 15 Conventional 1/14/2020 1/29/2020 2/20/2020 37 $995,000 $1,536,000 1636 Chestnut St DUPLEX 76 42 42 Conventional 7/10/2020 9/2/2020 9/22/2020 74 $799,000 $950,000 1639 Julia St DUPLEX 14 14 14 Conventional 2/12/2020 2/26/2020 3/20/2020 36 $895,000 $1,161,000 1652 Chestnut St DUPLEX 108 108 108 Conventional 6/25/2020 10/11/2020 11/10/2020 138 $1,350,000 $1,315,000 1701 Sacramento St 64 DUPLEX 93 6 6 Conventional 11/26/2020 12/2/2020 1/6/2021 41 $1,275,000 $1,300,000 1702 Fairview St DUPLEX 11 11 11 Conventional 6/17/2020 6/28/2020 7/23/2020 36 $1,075,000 $1,332,900 1710 Woolsey Street DUPLEX 11 8 11 Conventional 10/22/2020 10/30/2020 11/24/2020 32 $1,295,000 $1,610,000 1743 Cedar St DUPLEX 12 12 12 Conventional 3/11/2020 3/23/2020 5/14/2020 64 $1,900,000 $1,900,000 1805 6Th St DUPLEX 58 57 58 Conventional 11/9/2019 1/11/2020 3/10/2020 121 $995,000 $1,110,000 1901 9Th St DUPLEX 187 186 187 Conventional 7/29/2019 1/31/2020 9/16/2020 414 $1,340,000 $1,310,000 1930 Stuart Street DUPLEX 31 8 31 Conventional 11/28/2020 12/6/2020 1/5/2021 38 $1,395,000 $1,588,888 2003 Prince St DUPLEX 12 12 12 Conventional 6/25/2020 7/7/2020 8/6/2020 42 $1,095,000 $1,400,000 2110 6Th St DUPLEX 15 15 15 Conventional 11/18/2020 12/3/2020 1/12/2021 55 $1,549,500 $1,750,000 2378 Virginia St DUPLEX 0 0 0 Conventional 7/13/2020 7/14/2020 8/13/2020 41 $1,150,000 $1,150,000 2406 Curtis St DUPLEX 8 8 8 Conventional 10/30/2020 11/7/2020 12/4/2020 35 $995,000 $1,225,000 2415 Dowling Place DUPLEX 12 12 12 Conventional 10/8/2020 10/20/2020 11/30/2020 53 $1,050,000 $1,100,000 2415 Ninth St

108Page 75 of 167
79 DUPLEX 21 21 21 Conventional 9/24/2020 10/15/2020 11/13/2020 50 $949,000 $1,000,000 2520 10Th St DUPLEX 18 8 18 Conventional 12/14/2020 12/22/2020 1/15/2021 32 $1,165,000 $1,380,000 2711 Dana Street DUPLEX 6 6 6 Conventional 6/7/2020 6/16/2020 7/16/2020 39 $1,250,000 $1,610,000 2934-6 Ellsworth St DUPLEX 19 19 19 Conventional 6/12/2020 7/1/2020 7/30/2020 48 $1,199,750 $1,161,508 3006 Martin Luther King Jr Way DUPLEX 8 8 8 Conventional 6/11/2020 6/19/2020 7/24/2020 43 $995,000 $1,100,000 3046 Stanton St DUPLEX 28 28 28 Conventional 6/3/2020 7/3/2020 8/7/2020 65 $3,000,000 $3,100,000 3151 Lewiston Ave DUPLEX 22 22 22 Conventional 6/9/2020 7/1/2020 7/30/2020 51 $995,000 $950,000 656 Woodmont Ave DUPLEX 16 16 16 Conventional 3/30/2020 4/15/2020 5/13/2020 44 $1,200,000 $1,225,000 835 Bancroft Way DUPLEX 15 15 15 FHA 3/7/2020 3/22/2020 4/24/2020 48 $799,000 $810,000 1419 8Th St DUPLEX 114 114 114 Other 9/26/2019 1/29/2020 3/18/2020 173 $1,625,000 $1,400,000 1915 Berryman St DUPLEX 48 48 48 VA 10/16/2020 12/3/2020 1/5/2021 81 $1,475,000 $1,500,000 2211 Ashby Ave DUPLEX 43 15 43 11/5/2020 11/20/2020 12/23/2020 48 $849,000 $1,025,000 1731 Ward Street FOURPLEX 12 12 12 Cash 7/25/2020 8/6/2020 9/1/2020 38 $1,095,000 $1,193,000 1027 Bancroft Way FOURPLEX 64 63 64 Cash 11/3/2020 1/5/2021 2/5/2021 31 $1,075,000 $908,000 2429 San Pablo Avenue FOURPLEX 72 71 72 Cash 11/3/2020 1/13/2021 2/5/2021 31 $1,075,000 $957,000 2433 San Pablo Avenue FOURPLEX 41 41 41 Cash 6/9/2020 7/20/2020 8/14/2020 66 $2,295,000 $2,200,000 2720 College Ave FOURPLEX 15 15 15 Conventional 3/27/2020 4/11/2020 5/22/2020 56 $1,095,000 $1,275,000 1138 Addison St FOURPLEX 24 21 24 Conventional 8/26/2020 9/16/2020 11/18/2020 84 $1,499,000 $1,500,000 1192 Kains Ave FOURPLEX 19 19 19 Conventional 7/17/2020 8/5/2020 8/31/2020 45 $1,700,000 $1,690,000 1245 Berkeley Way FOURPLEX 7 7 7 Conventional 6/18/2020 6/25/2020 8/31/2020 74 $1,150,000 $1,075,000 1422 Milvia St FOURPLEX 15 15 15 Conventional 7/31/2020 8/19/2020 9/18/2020 49 $1,995,000 $1,936,500 1426 Spruce St 51 FOURPLEX 9 7 9 Conventional 10/15/2020 10/22/2020 11/20/2020 36 $1,448,000 $1,800,000 1432 Grant St FOURPLEX 6 6 6 Conventional 12/7/2020 12/13/2020 2/4/2021 59 $1,450,000 $1,600,000 1659 Julia St FOURPLEX 14 14 14 Conventional 9/1/2020 9/15/2020 10/7/2020 37 $1,875,000 $2,050,000 1823-5 Blake St FOURPLEX 12 12 12 Conventional 12/10/2020 12/22/2020 1/15/2021 36 $1,650,000 $1,960,000 2366 Virginia St FOURPLEX 22 22 22 Conventional 6/26/2020 7/18/2020 9/9/2020 40 $1,300,000 $1,200,000 2529 Ellsworth St FOURPLEX 18 18 18 Conventional 7/17/2020 8/4/2020 8/16/2020 30 $1,350,000 $1,350,000 3216 Baker St TRIPLEX 7 6 7 Cash 11/5/2020 11/11/2020 11/30/2020 25 $1,350,000 $1,715,000 1238 Hearst Ave TRIPLEX 17 17 17 Cash 2/18/2020 3/6/2020 4/3/2020 44 $499,000 $975,000 1519 Fairview St TRIPLEX 20 20 20 Cash 6/11/2020 7/1/2020 9/3/2020 84 $1,800,000 $2,500,000 1885 Alcatraz TRIPLEX 35 35 35 Cash 2/13/2020 3/19/2020 2/8/2021 360 $1,200,000 $1,075,000 1920 10th St TRIPLEX 38 38 38 Cash 9/13/2019 10/21/2019 3/6/2020 164 $749,000 $700,000 2238 Russell St TRIPLEX 20 20 20 Cash 9/18/2020 10/8/2020 10/28/2020 40 $1,908,108 $1,908,108 906 Hearst Ave TRIPLEX 13 12 13 Conventional 1/8/2021 1/20/2021 2/10/2021 33 $1,099,000 $1,245,000 1514 Julia Street TRIPLEX 5 0 5 Conventional 9/23/2020 9/23/2020 11/3/2020 41 $1,799,000 $2,000,000 1636 7Th St TRIPLEX 9 9 9 Conventional 8/10/2020 8/19/2020 9/18/2020 39 $1,100,000 $1,452,888 1717 Arch St TRIPLEX 49 49 49 Conventional 7/9/2020 8/27/2020 10/8/2020 81 $1,099,000 $1,375,000 1817 6Th St 79 TRIPLEX 21 21 21 Conventional 7/22/2020 8/12/2020 10/20/2020 90 $1,395,000 $1,360,000 2111 Byron St TRIPLEX 19 19 19 Conventional 7/3/2020 7/22/2020 9/10/2020 69 $1,250,000 $1,212,500 2331 Sacramento St TRIPLEX 46 46 46 VA 10/15/2020 11/30/2020 1/27/2021 104 $950,000 $950,000 1238 Hopkins St

109Page 76 of 167
80 ATTACHMENT #2
Average Closing Times and Financing
SFR 2 homes/1 lot Duplex Triplex FourPlex 5+ units Cash Conventional
Mortage VA Loan FHA Loan Other
Multi-Unit 44 64 79 51 96 26% 67% 2.1% 1.0% 2.1%
Single Family 52 17% 81% 0.5% 0.3% 1.5%
Purchase MechanismAverage Days Listing to Close

110Page 77 of 167
81 Attachment #3
Berkeley Properties and TOPA Applicability

111Page 78 of 167
82 ATTACHMENT 4
DC Apartment buildings and TOPA
As of March 2018, at least 40% of DC’s residential units (6.5% of its residential buildings) fell under TOPA; this included 7,510 apartment buildings with 120,619 units. The total number of residential housing units in the city at that time was 297,531 units, 103,250 of which were owner occupied and an unknown number of single- family homes, condominiums and cooperatives that were rented.1 From 2002-2018, at least 3,500 units were preserved through TOPA. 2 The city of DC does not have comprehensive TOPA data from before 2002. As of 2019, 4,400 Limited Equity Cooperative (LEC) units existed across 99 buildings; many of these LECs were created through TOPA.3 DC multifamily sales data from 2014-2015 is helpful in understanding the number of TOPA sales that happen every two years.4 During that time period, 131 sales of multi-family buildings took place. 32% of these sales (42 buildings) went through the TOPA process. Another 14 sales transacted outside of TOPA but were offered directly to the tenants. Therefore, every two years it is likely that at least 0.6-0.7% of the existing DC rental stock is going through the TOPA process or being purchased by tenants.

More recent data from the DC Department of Housing and Community Development (DHCD) highlights that larger multifamily buildings are the TOPA transactions most often supported with subsidy from DC’s Housing Production Trust Fund. DHCD closed funding for 13 TOPA projects of 832 units in FY17 and 9 TOPA projects of 449 units in FY18. 5 In FY19, DHCD funded acquisitions for 15 TOPA projects, 2 of which were sold to tenants creating an LEC.6
1 Stock of the District’s Housing Stock. Taylor, Yes Sayin. D.C. Policy Center. March 2018. https://www.dcpolicycenter.org/wp- content/uploads/2018/03/DC-Policy-Center-Housing-Report.final_.March25.pdf 2 DC’s First Right Purchase Program Helps to Preserve Affordable Housing. Reed, Jenny. DC Fiscal Policy Institute. September 2013. https://www.dcfpi.org/wp-content/uploads/2013/09/9-24-13-First_Right_Purchase_Paper-Final.pdf DC Multifamily Market Statistics - Mulitfamily Sales 2014-2015. Greysteel. 2016. https://dhcd.dc.gov/sites/default/files/dc/sites/dhcd/publication/attachments/Greysteel- %20D.C.%20Multifamily%20Market%20Statistics.pdf
Building a Local Housing Preservation Ecosystem. DC Department of Housing and Community Development. November 2018. http://oakclt.org/wp-content/uploads/2018/12/Oakland-TOPA-Final.pdf 3 Final Report. DC Limited Equity Cooperative Task Force. October 2019. https://dhcd.dc.gov/sites/default/files/dc/sites/dhcd/page_content/attachments/Final%20LEC%20Recommendations_10.21.19.pdf 4 DC Multifamily Market Statistics - Mulitfamily Sales 2014-2015. Greysteel. 2016. https://dhcd.dc.gov/sites/default/files/dc/sites/dhcd/publication/attachments/Greysteel- %20D.C.%20Multifamily%20Market%20Statistics.pdf . This data doesn’t include single-family or condo sales that went through the TOPA process.
5 DC DHCD Performance Oversight Hearing responses to DC Council. February 2019. https://dccouncil.us/wp- content/uploads/2019/02/dhcd19.pdf

112Page 79 of 167
83 Criticisms of DC TOPA
Criticism 1: DC TOPA promotes tenant capitalism instead of combating displacement and preserving affordable housing.

Response:

Berkeley’s TOPA ordinance is distinguishable from DC TOPA in these three ways:
1) Tenants cannot sell their rights.
2) Tenants can only assign their rights to Qualified Organizations (QOs) that the city vets. These QOs are affordable housing developers and must meet a list of criteria outlined in the ordinance, such as strict commitments to maintaining the property as affordable, tenant engagement, and other relevant experience.
3) All housing purchased through TOPA, whether by tenants or QOs, will have some form of permanent affordability restrictions to ensure affordability for future owners/renters.

Also, despite tenants in DC being able to sell their TOPA rights and receive buyouts from third parties, DC TOPA has still helped preserve thousands of units of housing. Since 2002, at least 3,500 units have been purchased through TOPA, most with public subsidy. The total number of units purchased/preserved through TOPA since its passage in 1980 is obviously much larger, but accurate data was not recorded until 2002. In 2002, DC established its Housing Production Trust Fund, which now has an annual allocation of $116 million.

Criticism 2: DC TOPA attracts bad actors that hold up owners for money and add time to the sales process. This is why DC got rid of TOPA for Single Family Accommodations (SFAs).

Response:

DC TOPA covered SFAs for 39 years. In 2019, the TOPA law was amended to exempt all SFAs. Unfortunately, a couple of bad actors had convinced several tenants living in owner-occupied Single Family Homes to sell their TOPA rights and then these bad actors held up owners for additional money.

Berkeley’s ordinance considered all of this. This is why Berkeley’s ordinance does not allow tenants to sell their rights, and therefore prevents bad actors from being able to enter the TOPA process. In addition, Berkeley’s TOPA ordinance requires tenants to work with a supportive partner after they have expressed interested in purchasing. Supportive partners will help tenants understand their TOPA rights, how to make corporate decisions, as well as the possible financial costs and support for the transaction.

Finally, Berkeley’s housing stock is comprised primarily of small sites and many SFAs, which are not appropriate for most large-scale affordable housing subsidies. TOPA presents a great opportunity to bring these rental properties under permanent affordability and provide much-needed protections to tenants in SFAs who currently have little to no protections. Berkeley’s TOPA ordinance also has an exemption for owner-occupied SFAs and owner-occupied SFAs with a secondary dwelling unit if either unit is owner-occupied. 6 DC DCHD Performance Oversight Hearing responses to DC Council. February 2020. https://dccouncil.us/wp- content/uploads/2020/02/dhcd.pdf

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84 1
ATTACHMENT #5
Community Outreach on TOPA and
Responsive Policy Changes
Community Outreach
The TOPA working group has done extensive community outreach regarding TOPA, to community organizations focused on both tenant and property owner needs. This includes meeting with stakeholder groups across the community (Alameda County Democratic Party (ACDCC), Berkeley Black Ecumenical Ministerial Alliance (BBEMA), Berkeley Citizens’ Action (BCA), Berkeley Neighborhoods Council (BNC), District 3 property owners (community meeting), East Bay Housing Organizations, Friends of Adeline, Healthy Black Families, International Warehouse and Longshore Union (ILWU), McGee Spaulding Neighbors in Action, Service Employees International Union (SEIU) 1021, Sierra Club, and Wellstone Democratic Renewal Club).This outreach has resulted in a growing TOPA endorser list. The working group is also having ongoing conversations with Berkeley Property Owners Association (BPOA), and with individual realtors, about the policy.

In addition to these efforts, the TOPA working group has accepted input for several years now and over the past year in particular through the Mayor’s Office and public comments.The community outreach undertaken has influenced specific elements of the policy revisions, described below. The Mayor’s Office and the TOPA working group also hosted a Community Forum on January 27, 2021, which was attended by over 100 participants (link to recording).

The following resources were created and promoted to further educate the community around the policy:
● Frequently Asked Questions (FAQs) for tenants
● FAQs for landlords
● Overall FAQs, which include information on TOPA in Washington, DC ● TOPA Timeline Overview and TOPA Timeline FAQs
● TOPA Racial Equity FAQs
● TOPA Resources Page

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85 2
Proposed Revisions from Community Input
The following section describes the significant revisions to the proposed policy since the March 5, 2020 Land Use and Policy Committee meeting.

Removing appraisal provision
The appraisal provision has been removed from the proposed policy.This clause was removed in response to property owner feedback about the complexity and additional time of an appraisal provision.

Added requirement that tenants cannot sell a waiver of their rights A provision was added to the policy clarifying that tenants cannot sell a waiver of their rights.

One key distinction of the proposed Berkeley policy from the Washington D.C. policy has been that tenants are not permitted to sell their TOPA rights under the policy; this latest provision clarifies that tenants cannot sell a waiver of their rights either.

Permanent affordability
The previous proposed policy requires permanent affordability (via recorded deed resale restrictions) on all TOPA purchases. The revised proposal removes this permanent affordability (PA) requirement for tenant purchases financed without public subsidies. While TOPA’s PA requirements remain unchanged for Qualified Organization purchasers, for tenant-purchased properties PA requirements will now be dictated by the terms of applicable subsidies or limited equity ownership models. This revision responds to feedback from community groups that unfunded PA mandates constrain wealth-building. Public subsidies used to acquire and rehab any purchase typically carry their own enforceable affordability requirements. Enforcement of PA deed restrictions would also be more difficult to enforce on tenant projects without public subsidy. This revision promotes wealth building for tenants able to leverage their own resources and reduces administrative redundancies and burden.

Clarifying process and exemptions
Certain exemptions were clarified in the policy. For example:
● Owner-occupied single family homes, including those with an ADU, where an owner lives in either the single family home or the ADU as their primary residence, are exempted in the policy. The policy was clarified to delineate that the "primary residence" determination will remain mostly consistent with existing Rent Stabilization Ordinance definition. The policy was also clarified to note that this exemption applies to a parcel with one single-family home with one ADU.
● The medical emergency exemption was clarified; this exemption applies when the transferor demonstrates that the sale of the property is necessary to pay for the immediate health care needs of the transferor or their family member. This exemption is limited to small property owners.

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86 M E M O R A N D U M
Date: 9/30/2021
To: Mayor Jesse Arreguin
From: Marissa Garibay
Regarding: NYC HDFC Co-op Overview
----------------------------------------------------------------------------------------------------------------- OVERVIEW:

Housing Development Fund Corporation Cooperatives (HDFCs) in New York City are essentially limited equity cooperatives (LECs) organized under the legal structure of HDFCs.

The NYC Department of Housing Preservation and Development (HPD) is the regulatory body overseeing the development and authorization of cooperatives while offering financial, technical, and educational assistance through various programs to potential shareholders’ in the process of achieving cooperative status. Admission of potential shareholders relies upon specific income requirements and HDFCs are most utilized by POC communities and led by women of color.

Successful cooperatives rely heavily on HPD funded programs to assist the building transition to cooperative status, which in turn, relies heavily on city budget allocations upwards of hundreds of thousands of dollars.

BACKGROUND:

1. As a result of redlining, city disinvestment, and landlord abandonment of buildings in the 1970s and 80s, tenant activism and the pursuit of homesteading led to the development of HDFCs.1

2. HPD, a New York City public entity, regulates limited equity cooperatives (LECs) organized as HDFCs.2

3. HDFCs are affordable housing co-ops legally designated to provide housing to low-income qualifying people in New York City .3
a. Each cooperative thus becomes an individual business corporation, in which residents become shareholders of their designated units.4 4 https:/ /uhab.org/our-work/coop-support/whats-an-hdfc/ 3 Ibid.
2 https:/ /www1.nyc.gov/site/hpd/services-and-information/hdfc.page 1 https://www.uhab.org/about-us/history/

87 Garibay 2
b. The co-op corporation owns the real estate and no shareholder-member owns real property, only shares of stock (stock = apartment unit), with a proprietary lease that specifies the apartment in which they reside.5
c. HDFCs are collectively owned and operated by their shareholders and all shareholders own an equal number of shares, this is regardless of apartment size .6

4. Corporate governance is by the Board of Directors. Shareholders democratically elect a board every year, and the board selects Co-op officers, with the board working to serve the shareholders needs and make collective decisions about their expenses, energy needs, and roles in the building.7

5. All common-area costs, corporate mortgage debt service, and all co-op expenses such as insurance, taxes, professional property management, capital repairs, co-op reserves, heat, and common area electricity are shared.8

6. Instead of rent, HDFC shareholders pay a monthly maintenance fee. These fees—collected in the cooperative’s bank account and controlled by a democratically elected board—fund the daily operations of the building.9

7. HPD administers several programs that result in the creation of new HDFCs. These programs include the Tenant Interim Lease Program (TIL) and the Affordable10 Neighborhood Cooperative Program (ANCP) .11
a. TIL Program:
i. Beginning in 1978, HPD took over the titles of neglected and landlord abandoned buildings, which became City-owned buildings, that are candidates for becoming LECs under the TIL Program.12
ii. The TIL Program allows for existing tenants of the City-owned buildings an opportunity to become a shareholder of their unit as a cooperative, with rents being restructured to support the conversion of cooperative status and ongoing operating expenses. 13
iii. The TIL Program has an extended timeline and more requirements to fulfill as a tenant is pursuing shareholder status. This includes building management education programs to learn how to successfully manage and operate a cooperative building.14
14 Robin, Sean. Assistant Commissioner HPD, CRTS. Email to Marissa Garibay. 24 September 2021. 13 Ibid.
12 https:/ /furmancenter.org/coredata/directory/entry/tenant-interim-lease-program 11 Ibid.
10 Robin, Sean. Assistant Commissioner HPD, CRTS. Email to Marissa Garibay. 24 September 2021. 9 Ibid.
8 Ibid.
7 Ibid.
6 Ibid.
5 https:/ /uhab.org/our-work/coop-support/whats-an-hdfc/

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iv. There is no estimated timeline for achieving cooperative status through TIL program, it can take upwards of years and depends on cooperation15 of tenants in TIL program and their ability to:

1. Agree to Purchase Cooperative Shares: At least 80 percent of residents must agree to become shareholders and purchase their shares.

2. Attend Training Classes: If residents choose homeownership, HPD requires at least 80 percent of the tenants must participate in mandatory cooperative management training during the
construction period to help prepare them for the responsibilities of homeownership.

3. Remain Current on Rent Payments: Cooperative sustainability relies heavily on its financial strength. Regular rent payments will lay a solid foundation for the tenant association upon conversion to a cooperative. At least 80 percent of residents must stay current on rent in order to purchase their shares.16
v. HPD guides tenants through this process and provides technical and managerial support to the tenant associations.
vi. HPD’s Office of Asset & Property Management currently oversees buildings in the TIL Program and has assigned a TIL building coordinator to each Tenant Association. The building coordinator acts as a property management liaison and is responsible for overseeing Tenant Association activities.17
vii. A building becomes an official cooperative depending upon the tenant association’s ability to successfully create monthly financial reports, rent collections, and hold annual elections of offices for the tenant association18

1. The biggest struggles for tenants include executing rent collections, developing skills to manage building maintenance issues, and raising capital to renovate buildings.
viii. Currently, 89 buildings in the TIL Program are awaiting cooperative status, representing 1,489 units. There are over 10,000 units that have19 become shares within established cooperatives through this process.20 20 https:/ /furmancenter.org/coredata/directory/entry/tenant-interim-lease-program 19 Ibid.
18 Robin, Sean. Assistant Commissioner, CRTS HPD. Email to Marissa Garibay. 24 September 2021. 17 https://furmancenter.org/coredata/directory/entry/tenant-interim-lease-program 16 https://www1.nyc.gov/site/hpd/services-and-information/tenant-associations.page 15 Sean Robin (HPD), Simone Ross (TIL Program), Ruthie Vishlitzky (HPD). Interview by Marissa Garibay. 20 September 2021.

89 Garibay 4
ix. Articles of Association and By-Laws for TIL Program:
https://www1.nyc.gov/assets/hpd/downloads/pdfs/services/til-articles-of-a ssociation-and-bylaws.pdf
b. ANCP:
i. Beginning in 2015, ANCP selects qualified developers to rehabilitate distressed city-owned, occupied multi-family properties, managed by the Tenant Interim Lease Program, to create affordable cooperatives for low- and moderate-income households.21
ii. ANCP provides low-interest loans in the form of a City Capital subsidy of up to $200,000 per unit, in addition to construction and permanent financing sources provided by, but not limited to, private institutional lenders and New York State Affordable Housing Corporation (AHC) programs.22
iii. All ANCP properties are owned by the City of New York until they are transferred to Restoring Communities HDFC upon the closing of the construction loan and convey title to a newly formed HDFC property upon cooperative conversion.
iv. Projects are eligible for Article XI real estate tax exemption for up to 4023 years.24
v. ANCP Term Sheet:
https://www1.nyc.gov/assets/hpd/downloads/pdfs/services/ancp-term-shee t.pdf

8. HPD also administers financing programs to aid and facilitate the physical and financial sustainability and affordability for owner-occupied HDFCs that provide low-interest financing for capital improvements or refinancing of existing loans.25 a.

Green Housing Preservation Program (GHPP) - provides low- or no-interest loans to finance energy efficiency and water conservation improvements, lead remediation, and moderate rehabilitation work.26
b. HUD Multifamily Housing Rehabilitation Loan Program- leverages public resources and private sector financing to rehabilitate, recapitalize and preserve privately-owned HUD-assisted rental housing throughout New York City. The Program’s mission is to ensure low-income households remain in affordable 26 https://www1.nyc.gov/site/hpd/services-and-information/green-housing-preservation-program-ghpp.page 25 https://www1.nyc.gov/site/hpd/services-and-information/hdfc.page 24 https://furmancenter.org/coredata/directory/entry/affordable-neighborhood-cooperative-program 23 https://www1.nyc.gov/site/hpd/services-and-information/tax-incentives-article-xi.page 22 Ibid.
21 https://furmancenter.org/coredata/directory/entry/affordable-neighborhood-cooperative-program

90 Garibay 5
apartments over the long term, to promote financial and physical stability, and to promote revitalized neighborhoods.27
c. Participation Loan Program (PLP)- provides low-interest loans and/or tax exemptions to multifamily building owners to facilitate the moderate or substantial rehabilitation and affordability of housing for low-to-moderate-income households.28
d. HomeFirst Down Payment Assistance Program- provides qualified homebuyers with up to $100,000 toward the down payment or closing costs on a 1-4 family home, a condominium, or a cooperative in one of the five boroughs of New York City.29

INCOME REQUIREMENTS

1. Article XI requires HDFC coops to provide housing for persons and families of low income.30

2. Some HDFCs refer to Section 576 of the NYS Private Housing Finance Law (NYS PHFL) while others use percentages of area median income (AMI) in determining income qualification.
a. 2021 Area Median Income Guidelines:
i. Under the NYS Private Housing Finance Law, low income means persons and families whose household income does not exceed 165% of (AMI). ii. 2021 AMI for New York City Region. (See Appendix A)31 b. Section 576 of NYS PHFL Income Formula:
i. This formula requires that units be made affordable to new shareholders that earn no more than 6 (for a 1-2 person household) or 7 (for a 3+ person household) times the annual maintenance fee plus utility costs, plus six percent (6%) of the current shareholder’s (i.e. seller’s) original investment. 32 ii. Example of Maximum Income Calculations (See Appendix B & Appendix C)
32 Ibid.
31 Ibid.
30 https://www1.nyc.gov/site/hpd/services-and-information/hdfc.page 29https://www1.nyc.gov/site/hpd/services-and-information/homefirst-down-payment-assistance-program.p age
28 https://www1.nyc.gov/site/hpd/services-and-information/participation-loan-program-plp.page 27 https://www1.nyc.gov/site/hpd/services-and-information/hud-multifamily-program.page

91 Garibay 6

LEGISLATION

1. HDFC coops are incorporated under
a. New York State Business Corporation Law:
https://www.nysenate.gov/legislation/laws/BSC/-CH4
b. Article XI of the New York State Private Housing Finance Law (Article XI):
https://www.nysenate.gov/legislation/laws/PVH/573

RESALE RESTRICTIONS

1. HDFC coops are different from market rate coops in that a shareholder’s ability to gain a profit from selling a unit is limited to ensure the continued affordability of the unit to future low-income purchasers.33

2. The primary economic benefit of limited-equity co-op ownership comes while residents live in the co-op, not when they leave.34

3. Sales prices should be affordable for a family that fits the income restrictions of a particular building. Prices should be low enough so that purchasing households are not generally spending more than one-third (33%) of their income on housing costs, which include mortgage payments, maintenance payments, and utilities. Coops with Regulatory Agreements may have limits on sales prices.35

4. Almost all HDFC coops limit subletting. In general, short-term subletting with the Board of Directors’ permission is acceptable where the shareholder intends to return to the apartment, but long-term sublets are not permissible. All subtenants must meet the income eligibility requirements of the HDFC coop. 36

5. Subtenant restrictions are subject to change per HDFC proprietary lease, where family members seeking to live in the unit can either be excluded from or required to participate in official subletting.

6. Sample Proprietary Lease:
i. Section 5.03 Restrictions on Shareholder’s Use:

1. The Shareholder shall not occupy or use the Apartment or permit it or any part of it to be occupied or used for any purpose other than as a private residence for the Shareholder, Shareholder’s spouse, children, parents, brothers, sisters, grandparents, grandchildren and domestic employees. Occupancy of the Apartment by any other person shall require prior written approval in writing by the HDFC on such conditions as the HDFC may prescribe and in compliance 36 Ibid.
35 Ibid.
34 Ibid.
33 https://www1.nyc.gov/site/hpd/services-and-information/hdfc.page

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with any restrictions against subletting, as set forth within the Regulatory Agreement, if any.37

7. Flip Tax:
a. The sales of apartments in many HDFC coops are subject to a flip tax. This means that when a shareholder sells their apartment, the sale profits are divided between the selling shareholder and the HDFC. A flip tax is very important for the ongoing successful operation of an HDFC coop.38
b. The HDFC coop re-invests the flip taxes it collects into capital repairs and other building needs. Using flip taxes to pay for capital repairs and reserves also means that maintenance might not need to be increased as much or as rapidly to pay for such repairs and reserves.39
c. A shareholder should check the HDFC’s governing documents (including Bylaws and Certificate of Incorporation), any agreements binding the HDFC, the proprietary lease from the coop, and the share certificate to determine the amount of the applicable flip tax.40
d. Example of Flip Tax Calculations ( See Appendix D)

SOCIAL IMPACT

1. HDFCs house a majority of people of color, and are most often run by women of color. 41

2. HDFCs are located primarily in formerly redlined communities of color, showing their roots in the self-help housing movement. (See Appendix E)42

3. Redlined neighborhoods like the South Bronx, Central Brooklyn, and Harlem were the main targets of disinvestment, landlord abandonment, and white flight leading up to NYC’s fiscal crisis in the 1970s. (See Appendix F)43

4. These neighborhoods are precisely where residents and community leaders supported one another through homesteading or fixing up and eventually securing legal ownership of their buildings.

Tenants organized and used sweat equity—the contribution of labor in place of money—to carve opportunity out of crisis.44

FISCAL IMPACT
44 Ibid.
43 Ibid.
42 Ibid.
41 https://www.uhab.org/our-work/coop-support/whats-an-hdfc/ 40 Ibid.
39 Ibid.
38 https://www1.nyc.gov/site/hpd/services-and-information/hdfc.page 37 https://www.uhab.org/resource/sample-proprietary-lease/

93 Garibay 8

1. Because projects developed with HDFC loans must provide housing for low-income residents, the permanent financing is generally State, Federal or Municipal government-aided.45

2. HPD Fiscal 2022 Preliminary Capital Commitment Plan (See Appendix G) a. Comprises 594 projects across 120 budget lines totaling $6 billion in Fiscal 2021-2025, including $5.8 billion in City funds and $160 million in federal HOME funds.46
b. In addition to these funds, HPD leverages City capital resources to generate substantial private equity that does not flow through the City’s capital budget as part of the Department’s commitment to create and preserve 300,000 units of affordable housing under Housing New York by 2026.47
c. Under the 2021-2025 Preliminary Capital Commitment Plan, the City will invest in more than 125,000 affordable housing units, including the construction of 50,000 units and the preservation of 75,000 units as part of Housing New York.48 d. To date, the City has financed 177,971 affordable housing units through various financing programs that facilitate preservation, new construction, supportive housing, and the disposition of in rem housing stock.49 50 i. Major Preservation Programs in Preliminary Capital Commitment Plan 51

1. Bolded Programs fund HDFCs
a. $772.3 million for the Participation Loan Program (PLP) b. $413 million for the Low Income Housing Tax Credit
(LIHTC) Projects- LIHTC Year 15 Preservation Program
c. $286.7 million for the Affordable Neighborhood
Cooperative Program (ANCP)
d. $120 million for the HUD Multi-Family program
e. $189.4 million for the Third Party Transfer Program (TPT)

3. Homeownership Assistance
a. As a component of Humanities New York (HNY), HPD also promotes and preserves affordable homeownership through various programs, including down payment assistance for first-time homebuyers, low-interest home repair loans, and financing for the construction of co-ops and condos.52
52 Ibid.
51 Ibid.
50 https://council.nyc.gov/budget/wp-content/uploads/sites/54/2021/03/806-HPD.pdf 49 In Rem refers to a lawsuit or other legal action directed towards a property, rather than toward a particular person. https://bnblegal.com/in-rem/
48 Ibid.
47 Ibid.
46 https://council.nyc.gov/budget/wp-content/uploads/sites/54/2021/03/806-HPD.pdf 45 https://hcr.ny.gov/housing-development-fund-corporation-hdfc

94 Garibay 9
i. Over the life of the plan, about 43,989 homes have been financed to support and sustain affordable homeownership citywide at a total cost of $554.2 million in City subsidies.53

4. Management and Administration
a. As of October 2020, there were 1,012 co-op projects in HPD’s portfolio. 54 b. In Fiscal 2020, 27 percent of co-op projects were categorized as exhibiting signs of high-risk physical distress, financial distress, or noncompliance with federal requirements.55
i. The Department uses these risk metrics to prioritize outreach and intervention efforts in the Asset Management portfolio. (See Appendix56 H)
c. During the first four months of Fiscal 2021, the number of rental buildings in HPD’s asset management portfolio increased by 236 buildings compared to the previous year. 57
d. During the first four months of Fiscal 2021, the number of co-op projects in HPD’s portfolio remained flat and the percentage of medium/high-risk co-op projects also remained flat at about 7 percent.58

PITFALLS

1. According to HPD testimony:
a. Concerns heard from residents:
i. Length of time in TIL/slow pace of ANCP
ii. Building Conditions in TIL
iii. TIL/ANCP eligibility criteria are too demanding
iv. Need improved communication with tenants. 59
b. Concerns from TIL program administration:
i. The biggest struggles for tenants:

1. executing rent collections

2. developing skills to manage building maintenance issues

3. raising capital to renovate buildings 60
60 Robin, Sean. Assistant Commissioner, CRTS HPD. Email to Marissa Garibay. 24 September 2021. 59 Hendrickson, Anne-Marie, Deputy Commissioner for Asset & Program Management New York City Department of Housing Preservation and Development. Oversight Hearing Before the New York City Council on the Tenant Interim Lease Program Committee on Housing & Buildings. April 27, 2017. 58 Ibid.
57 Ibid.
56 Ibid.
55 Ibid.
54 Ibid.
53 https://council.nyc.gov/budget/wp-content/uploads/sites/54/2021/03/806-HPD.pdf

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2. Reliance on multiple partner programs and private funding to assist potential shareholders in achieving cooperative status and goals.

3. Fiscal Commitment.

96 Garibay 11

APPENDIX
Appendix A
2021 AMI for New York City Region:
https://www1.nyc.gov/site/hpd/services-and-information/hdfc.page

97 Garibay 12
Appendix B
Example of Maximum Income Calculations
https://www1.nyc.gov/assets/hpd/downloads/pdfs/services/section-576-examples.pdf

98 Garibay 13
Appendix C
Example of Maximum Income Calculations
https://www1.nyc.gov/assets/hpd/downloads/pdfs/services/section-576-examples.pdf

99 Garibay 14
Appendix D
Example of Flip Tax Calculations
The HDFC’s governing documents (including Bylaws and Certificate of Incorporation), agreements binding the HDFC, the proprietary lease from the coop, and the share certificate determine the amount of the applicable flip tax
https://www1.nyc.gov/site/hpd/services-and-information/hdfc.page

100
Garibay 15
Appendix E
HDFCs are located primarily in formerly redlined communities of color. https://www.uhab.org/about-us/impact/

101
Garibay 16
Appendix F
Redlined neighborhoods like the South Bronx, Central Brooklyn, and Harlem were the main targets of disinvestment, landlord abandonment, and white flight leading up to NYC’s fiscal crisis in the 1970s. The percentages reflect the current amount of HDFCs within those boroughs. https://www.uhab.org/our-work/coop-support/whats-an-hdfc/

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Garibay 17
Appendix G
HPD Fiscal 2022 Preliminary Capital Commitment Plan
https://council.nyc.gov/budget/wp-content/uploads/sites/54/2021/03/806-HPD.pdf

103
Garibay 18
Appendix H
In Fiscal 2020, 27 percent of co-op projects were categorized as exhibiting signs of high-risk physical distress, financial distress, or noncompliance with federal requirements.
https://www1.nyc.gov/assets/hpd/downloads/pdfs/services/section-576-examples.pdf

104
TOPA - HHCS Staffing Projections
January 2022
Ordinance Staffing – 1.55 FTE/year
Community Development Project Coordinator
Task % FTE Ordinance
Reference
Acts as City liaison to professional and civic groups, community organizations and individuals; conveys opinions and suggestions from these groups to management staff
5%
Administer and coordinate w/ CAO on exemption petitions 2% 13.89.050 Advise Tenants/QO’s on applying for City funding 5%
Advise Tenants/QO’s on applying for City funding and coordinate with Small Sites Program staff 5% 13.89.140
Certifying/renewing and contracting with Supportive Partners; City liaison for project coordination 3% 13.89.070
Certifying/renewing Qualified Organizations and maintaining active public list; City liaison for project coordination 3% 13.89.060 Collect and evaluate program metrics to assess program success including racial equity analysis to be reported to City Manager and City Council
5%
Contract with and coordinate translation services for notices and educational materials 2%
Coordinate reported violations response with City Attorney 3% 13.89.170 Coordinate transfer tax exemption with Finance if landlord accepts First Offer (partial tax transfer refund) 2% 13.89.110
Develop targeted materials and provide ongoing education for Landlords 5% 13.89.110
Develop targeted materials and provide ongoing education for Tenants 10% 13.89.070 File/post seller notices to tenants and tenant/QO statements of interest 5% 13.89.080 Manage database of TOPA units and coordinate services contract with IT or vendor 10% Council Report
recommendation
Monitor and evaluate Supportive Partner (SP) and Qualified Org (QO) contracts/work product 10% 13.89.070 (SP),

13.89.060 (QO)
Organize education programs, trainings, and meetings 10% 13.89.070 Prepare reports regarding assigned programs/projects; makes presentations to the community, City Council, City Manager and other agencies about the department's plan/programs; coordinates project activities with other City departments
5%
Process and maintain database of Tenant Organization registrations 2% 13.89.080D Produce an Annual Report outlining TOPA filings and transactions, including tenant demographic information where possible, as well as information on conversion (eg condo, limited equity housing cooperative, etc.)
5% 13.89.160C
Verify that purchaser recorded any required affordability covenants by close of escrow/File recorded docs in City records 3% 13.89.150 100%

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TOPA - HHCS Staffing Projections
January 2022
Senior Community Development Project Coordinator
Task % FTE
Assists management and personnel in other departments in the planning, conduct and evaluation of programs 3%
Coordinate with CAO on legal issues, violations and/or challenges related to program 3%
Coordinate with Small Site Program staff to assess capacity and pipeline projects 2%
Plan, schedule and coordinate the activities of assigned professional and technical staff on an ongoing basis including contracts, data collection, reports, and education
10%
Prepare and monitor project and program budgets and expenditures; develop timetables and work programs 2%
20%
Deputy City Attorney II*
Task % FTE Ordinance
Reference
Adjudicate policy exemptions, such as definition of principal residence, family in family transfer, and medical hardship waivers 5% 13.89.050
Adjudicate non-compliance with ROFR (verifies bona fide offers when dispute reported)
5% 13.89.100
Landlord/tenant mediation 5% 13.89.170
Legal Analysis of potential violations 5% 13.89.170
Remedies/Civil Action for violations 10% 13.89.170
Support advising of tenants and QOs 5%
35%
*This is strictly related to ordinance implementation and does not reflect any staffing required for legal challenges to the ordinance
Database
The Planning Department estimated a database similar to it’s short term rental system would be $100,000/year.

Small Sites Program - .2 FTE/project
Community Development Project Coordinator Per Project
Task % FTE
Application review 2%
Acquisition loan underwriting and contracting 5%
Development/Rehab loan underwriting contracting 5%
Draft and record deed restrictions/covenants 3%
Monitor rent adjustments/limitations 2%
Predevelopment loan underwriting and contracting 3%

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TOPA - HHCS Staffing Projections
January 2022
20%

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Annual TOPA Cost Projections
Ordinance Staffing
Pay Periods Benefits Indirect Costs
26 70% 17%
Classification Salary (Step 3) Annual Benefits Indirect Costs COM DEVELOPMENT PROJ COOR $53.89 $112,091 $78,464 $19,056 SENIOR COM DEV PRJ CORD $62.33 $129,646 $90,752 $22,040 DEP CITY ATTORNEY II $74.84 $155,667 $108,967 $26,463
Office Space Rental - TBD
Database
Consultant Contract for
Management/Maintenace
SSP Staffing
Projected SSP Funding Average Project
FTE Per
Average Project
QO Capacity
Support/Projec
t
Projected SSP
Funded
Projects
$ 2,000,000 $ 1,000,000 0.2 $ 25,000 2
Classification Salary (Step 3) Annual Benefits Indirect Costs COM DEVELOPMENT PROJ COOR $53.89 $112,091 $78,464 $19,056 Qualified Org Capacity Support ($25k/project)

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Total FTE Cost % FTE Total
$209,611 1 $209,611
$242,439 0.2 $48,488
$291,098 0.35 $101,884
$359,982
$100,000
Total
Total FTE Cost
Projected Staff Per
Total Program
Funding
$209,611 0.40 $83,844
$50,000
$133,844

109
Office of the Mayor
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7100 ● TDD: (510) 981-6903 ● Fax: (510) 981-7199 E-Mail: [email protected]

ACTION CALENDAR
March 10, 2020
To: Honorable Members of the City Council
From: Mayor Jesse Arreguín
Subject: Tenant Opportunity to Purchase Act, Adding BMC Chapter 13.89

RECOMMENDATION

1. Adopt a first reading of an ordinance adding Berkeley Municipal Code Chapter

13.89, the Tenant Opportunity to Purchase Act (TOPA), that will take effect on final adoption with an implementation start upon completion of Administrative Regulations and funding of related program costs; and

2. Direct the City Manager to take all necessary steps to implement this chapter including, but not limited to:

1. Developing Administrative Regulations;

2. Preparing an implementation strategy;

3. Identifying resources to align databases from Finance, Planning, and the Rent Board to accurately reflect the properties that would be subject to TOPA;

4. Determining necessary staffing for program administration and hearing officers for adjudication;

5. Timelines for project “roll-out”;

6. Determining appropriate amount of funding needed to support the acquisition of TOPA properties and recommending possible funding sources;

7. Quantifying an annual program budget and referring such program costs to the June 2020 Budget process.

SUMMARY
TOPA is a policy that empowers tenants to determine the future of their housing when an Owner is ready to sell, by giving tenants the opportunity to collectively purchase the property they live in. It does this by creating legal rights for tenants to purchase or assign rights to an affordable housing developer, and providing technical assistance, education, and financing to help make these purchases possible. TOPA provides a way to stabilize existing housing for tenants and preserve affordable housing in Berkeley. It

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also creates pathways for tenants to become first-time homeowners and facilitates democratic residential ownership. TOPA will apply to all rental properties in Berkeley, subject to a number of exemptions, including owner-occupied Single Family/Owner Occupied properties, including those with an Accessory Dwelling Unit (ADU) or other secondary dwelling unit, that do not have a homeowner exemption registered with the County Tax Assessor.

The first right to purchase is conferred to tenants, and includes a right of first offer, right of first refusal, and a right for tenants to assign rights to a qualified affordable housing organization. If tenants waive their rights, the list of qualified affordable housing organizations have a second opportunity to purchase the property within shorter timelines. Qualified affordable housing organizations must be committed to permanent affordability and democratic residential control. Assigning rights in this manner also benefits the affordable housing developers, especially community land trusts, as the tenant buy-in is often critical to the successful management of the property.

The policy is designed to maintain properties purchased under TOPA as permanently affordable for future generations. Any TOPA property that receives City investment would be deed restricted to ensure that the property remains permanently affordable.

TOPA properties that are purchased without City investment would also have a deed restricted upper limit for property appreciation. This would result in the accessibility of those properties to serve tenants around 80% AMI.

Multi-tenant buildings that include a mix of TOPA buyers and tenants who wish to continue renting will be required to ensure tenant protections and the enforcement of tenant’s rights. This will prevent any internal displacement caused by the exercising of TOPA rights.

TOPA sales have longer escrow periods in order to provide tenants time to organize, engage technical assistance, form an organization that would qualify for financing, and obtain the necessary financing to close a transaction. In order to incentivize owners to participate in a TOPA sale, since it may potentially take more time, upon close of escrow the City would refund to the seller the City’s portion of the Real Property Transfer Tax (.75%) not including the proportional amount attributed to Measure P.

Recent transactions, including asking vs. sales price and days on the market were gathered from Zillow and provided in Attachment 2.

Moving forward a TOPA policy will require detailed Administrative Regulations and a well-funded infrastructure to administer and enforce the policy. There is also a vital need to provide adequate education, legal and technical assistance to tenants as part of the implementation. Finally, a more robust and vibrant acquisition fund will be required that can work efficiently with the TOPA ordinance. This funding could be accommodated through the Small Sites Program with potential funding coming from

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Measure U1 tax receipts, the Housing Trust Fund, and Measure O or through another funding mechanism including grants.

BACKGROUND
Since 2015, Mayor Arreguin and community-based organizations such as the East Bay Community Law Center (EBCLC) and Northern California Land Trust (NCLT) have been researching TOPA’s effectiveness as an anti-displacement strategy in Berkeley, to be paired with a robust Small Sites acquisition program.

On February 14, 2017, Mayor Arreguin introduced a Council item entitled “Small Sites Acquisition Program and Tenant Opportunity to Purchase Act”1 which among other provisions, referred to the City Manager to:

Review and develop an ordinance modeled after Washington D.C.’s Tenant Opportunity to Purchase Act that offers existing tenants the first right of refusal when property owners place rental property on the sale market, which can be transferred to a qualifying affordable housing provider.

On May 30 and November 28, 2017, the Berkeley City Council adopted the “Affordable Housing Action Plan”2 which included a referral to staff to develop a Tenant Opportunity to Purchase Ordinance (TOPA) modeled after a Washington DC law that was enacted in 1980. On June 11, 2019, City staff returned to Council with an Information item3 that outlined its research and discussed the administration and implementation requirements. This item was referred to the Agenda & Rules Committee for scheduling at a future Council meeting. On September 24, 2019, the information item was included on the Consent Calendar with an action of “received and filed”.

Since the last date of Council action, the Mayor’s Office has been working to develop a TOPA ordinance, which has been drafted by the East Bay Community Law Center (EBCLC), with a diverse group of stakeholders including EBCLC, the Northern California Community Land Trust (NCLT), Bay Area Community Land Trust (BACLT), tenant advocates, legal professionals that specialize in tenant rights, experts familiar with the Washington DC policy and its implementation history, and City of Berkeley staff from the City Attorney’s Office, Planning Department, HHCS, Finance and the Rent Board.

Additionally, in September 2019, City Planning staff and the East Bay Community Law Center applied for a grant from the San Francisco Foundation as part of the Partnership 1 https://www.cityofberkeley.info/.../2017-02-14_Item_18b_Small_Sites_ Acquisition.aspx 2 https://www.cityofberkeley.info/.../2017-11-14_Item_26_Implementation_ Plan_for_Affordable_Housing.aspx 3 https://www.cityofberkeley.info/.../2019-06-11_Item_50_Referral_Response __Tenant_Opportunity_to_Purchase.aspx

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for the Bay’s Future initiative. The Grant purpose was to be used for technical assistance to jurisdictions for projects focused on protection and preservation of affordable housing that result in measurable benefits for tenants. Staff applied for the grant in response to the Berkeley City Council directive, in part, to develop a TOPA policy as part of the City’s Housing Action Plan (HAP), adopted in 2017.

On February 4, 2020 the San Francisco Foundation officially announced the awards, one being the City of Berkeley and the East Bay Community Law Center, for the purposes of developing a Tenant Opportunity to Purchase ordinance and a Local Housing Preference Policy. 4

CURRENT SITUATION AND ITS EFFECTS
Housing Affordability and Regional Impacts
At the end of 1998, just before State-mandated vacancy decontrol took effect, the average rent in Berkeley’s 20,000 apartments built before 1980 was $720 a month.

Twenty years later the average rent for these same units is $1,956. If rents had risen only by the rate of inflation, they would average $1,150 a month. In the last five years alone, rents have increased by 50 percent. Similarly, in 2000 the median home price in Berkeley was $380,000, rising to $704,000 in 2013 and by 2019 it had reached $1,300,000.5
Rents in Berkeley and the greater Bay Area continue to rise, with low vacancy rates.6 Future trends are indicating additional loss of naturally occurring affordable housing, according to the County of Alameda Regional Analysis of Impediments to Fair Housing Choice (IFHC). As an example: for decades, a 13-unit complex on Solano Ave. housed a mix of residents — including, teachers, business owners and a 96-year-old woman.

The property is rent-controlled and subject to Berkeley’s eviction protections, but the owners invoked the Ellis Act that permits full-building evictions if the property is removed from the rental market altogether (the owners intend to convert the building to a “tenancy-in-common” and sell the units at market rates).7 Anecdotal research, received from local real estate brokers over the past two months, indicate a desire to increase returns on investment as well as concerns about buyers moving away from the multi-unit property market.8 Due to rent control, tenant protections and eviction laws some owners are looking to sell multi-unit properties, however existing tenant rents impact the sales price. Some of the methods being utilized to raise rents, and therefore increase the property value for sale, include paying 4 https://sff.org/partnership-for-the-bays-future-marks-one-year-anniversary/ 5 Housing for a Diverse, Equitable and Creative Berkeley, July 16, 2019 6 https://www.huduser.gov/portal/publications/pdf/OaklandCA-comp-17.pdf 7 https://www.berkeleyside.com/2019/12/10/theyve-been-evicted-from-a-north-berkeley-building-now-they-want-to-buy-it-with-help- from-a-land-trust
8 https://www.fool.com/millionacres/real-estate-market/articles/8-real-estate-market-predictions-2020/

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tenants to move out of the building, evictions for cause (when a case can be made), owner-move-in evictions, and Condo/Tenants-in-Common conversions.

Economic Factors
As the Bay Area region experiences increased economic growth and a high demand for housing, this growth is causing housing prices to rise that then displaces low-income residents. As seen throughout the IFHC report, low-income residents tend to also be minority residents. Therefore, continued growth of the region could lead to more displacement of minority residents and increased segregation unless certain actions are taken to encourage economic and racial/ethnic integration and access to stable affordable units in a range of sizes. Contributing factors affecting disproportionate housing needs include:
o Lack of private investments in specific neighborhoods o The availability of affordable units in a range of sizes o Displacement of residents due to economic pressures
o Limited supply of affordable housing within neighborhoods o Lack of economic support for low income home ownership The National Low-Income Housing Coalition (NLIHC) 2018 Out of Reach Study listed the Bay Area region as one of the least affordable areas in the United States. To be able to afford a two-bedroom market rate unit in Alameda County, a household would need to earn $44.79 per hour or $93,163 annually (“housing wage”). Comparatively, the average housing wage for California is $32.68 per hour or $67,974 annually.

Regional Policy 6, as recommended by the IFHC, is to:

Increase homeownership among low- and moderate-income households by allocating funds for homeownership programs that support low- and moderate- income households. This would include down payment assistance, first time home buyer programs, Mortgage Credit Certificate, below market rate (BMR) homeownership programs and financial literacy and homebuyer education classes. There is also a requirement to promote the programs and any other existing programs through marketing efforts.9
National Research on Ownership
While today’s economy is strong and job growth high, there is a growing gap between rates of economic growth and the levels of income. Wages can be growing but not at the same rate as the economy. Many low to middle income people do not have enough money to cover the basic needs due to rising costs – especially in housing. These lower 9 http://www.acgov.org/cda/hcd/documents/Draft-AI-Combined2019-10-24.pdf

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earnings lead to fewer assets and less wealth. For most Americans the greatest source of their wealth is their home, but home ownership is considerably lower than in past decades. Among African Americans, home ownership has decreased to a 60-year low.10
Providing ownership options for tenants is a mechanism to sustain affordability.

According to the Urban Institute’s Opportunity and Ownership Project, creating ownership within existing rental units provides opportunities for low income renters that will keep their housing costs stable over many years. They suggest that, rather than providing housing subsidies at the Federal and State level for new construction, investing in existing housing would provide many more units at an affordable level (new construction – especially in a good economy – is increasingly expensive).11 Further academic analysis from the Joint Center for Housing Studies, Harvard University states: “Public polices attempt to subsidize these barriers to home buying for low-income people through tax policies, grants and other strategies. Current policies are, at best, inefficient and inequitable, and, at worst, ineffective. A more systematic approach would adhere to a set of operating principles including achieving scale, focusing on moving renters to ownership, targeting subsidies to underserved populations, creating incentives for repayment, and maximizing efficiency”.12 City of Berkeley Housing Policies and TOPA Opportunity
Housing development has accelerated in Berkeley and while new permits issued from January 1, 2017 through December 31, 2018 exceed Regional Housing Needs Allocation (RHNA) requirements for above moderate incomes by 141%, affordable housing development is well below regional goals. The following table shows Berkeley’s progress toward its RHNA goals through December 2018.13 10 http://wbur.org/hereandnow/2020/02/10/job-economy-middle-class 11 https://www.urban.org/sites/default/files/publication/46626/411523-Promoting-Homeownership-among-Low-Income- Households.PDF
12 https://www.jchs.harvard.edu/sites/default/files/hbtl-08.pdf 13 Item_13_Annual_Housing_Pipeline_Report

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Attachment 5
Building Permit Action Year
Ext Low
<30%
AMI
VLI
31%-50%
AMI
LI
51%-80%
AMI
MOD
81-120%
AMI
BMR
Total
Above
MOD Total
January 1, 2014 – December 31, 2018 0 174 66 0 240 1,975 2,215 RHNA 266 266 442 584 1,558 1,401 2,959
Remaining RHNA Capacity Requirement 266 92 376 584 -574 Percent of Goal Achieved 0% 65% 15% 0% 141%
The current RHNA is for an 8.8-year period, from January 1, 2014 through October 31, 2022.

Progress towards 2014-2022 RHNA: Approved Building Permits January 1, 2014 – December 31, 2018
Table 5 – Status of Regional Housing Needs Allocation - All Housing Types.

Housing affordability is the first objective of the Housing Element of the City of Berkeley General Plan. Policy H-1 - Extremely Low, Very Low, Low, and Moderate-Income Housing sets the goal of increasing housing affordable to residents with lower incomes and outlines a number of actions to achieve this goal, including encouraging incentives for affordable housing development.14
The Berkeley City Council, in the referenced Housing Action Plan (HAP), stated support for Non-profit housing developers and Community Land Trust acquisition of property to stabilize rents through a Small Sites Program. Two such recent transactions, at 2321- 2323 Tenth Street and 1640 Stuart Street, have resulted in maintaining 16 units at below-market rates. This policy also stated consideration for the creation of limited and non-equity cooperatives affiliated with a democratic community land trust. This program was initially funded through Measure U1 tax receipts with an option of also utilizing Housing Trust Fund resources.

Until 1996, Berkeley condominium conversions provided the tenants a first right to purchase their unit, as did policies in Santa Monica whose policy was more far reaching.

TOPA working group members estimate that approximately 42% of all Berkeley residential properties would fall under TOPA. This estimate was based on an analysis of the property type, homeowner exemption and number of units from the 2018/2019 Alameda Property Tax roll. It is not reflective of the total number of units that would benefit from a TOPA Ordinance. (See Attachment 3).

Washington D.C. TOPA
Washington D.C. passed the Tenant Opportunity to Purchase Act (TOPA) in 1980. This policy regulates the conversion of use, sale and transfer of rental housing. Tenants have the first right of refusal to purchase their buildings and also can assign their rights to third parties, such as affordable housing developers. The impact of this policy has been immense with approximately 30% of annual multi-unit sales going through the 14 https://www.cityofberkeley.info/Planning_and_Development/Home/General_Plan_-_Housing_Element.aspx

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TOPA process. Since 2002, this policy has helped preserve over 3,500 units of affordable housing, 2,000 of which have been preserved since 2013.15 The growing impact of TOPA is due to massive and sustained increases in DC’s Housing Production Trust Fund, collaborative efforts to identify and harness other funding/financing, as well as sustained support for the community based organizations that help tenants understand and exercise their TOPA rights.

In order to fund the program, Washington DC dedicates $10M per year in Housing Trust Fund (HTF) allocations directly to TOPA and the Housing Production Trust Fund which has $40M for affordable housing preservation.

TOPA has also helped to create many limited equity cooperatives (LECs) in DC, which currently number 4,400 units across 99 buildings.16 The DC Limited Equity Cooperative Task Force, formed in 2018, came out with recommendations in October 2019 to increase the number of LEC units in DC by 45% by 2025 (additional 2000 units). TOPA will be a major vehicle to create these additional units. The task force has also identified how to improve/expand existing policy, financing and technical assistance to support the health of existing and future LECs.

Finally, TOPA has led to the creation of hundreds of tenant associations across Washington, DC. Many of these tenant associations were the main leaders and organizers in creating the DC Tenants Union in 2019.17 The Tenants Union is focused on supporting rent control and other tenant protection policies and plans to build power and solidarity across tenant associations from different parts of the city. (See Attachment 4)
San Francisco COPA18
In April 2019, the San Francisco Board of Supervisors passed, by a unanimous vote, the Community Opportunity to Purchase Act (COPA). COPA is designed to stabilize communities by preventing displacement and preserving affordable housing and applies to the sale of any non-condo residential building of 3 or more units. It gives qualified non-profit organizations a right of first offer prior to the property going on the market and a right of first refusal when the owner has a bona fide offer from a potential buyer.

Nonprofit buyers have a limited time (25 days) to work with tenants, exercise their rights under COPA and enter into a Purchase-Sale agreement. Recent articles are indicating challenges to the prescribed timeframes.19 While a seller is not required to accept the 15 https://www.dcfpi.org/wp-content/uploads/2013/09/9-24-13-First_Right_Purchase_Paper-Final.pdf 16 https://dhcd.dc.gov/sites/default/files/dc/sites/dhcd/publication/attachments/Greysteel- %20D.C.%20Multifamily%20Market%20Statistics.pdf
17 https://www.streetsensemedia.org/article/dc-residents-launch-a-city-wide-tenant-union-in-hopes-to-foster-solidarity-across-the- district/#.XjSX3i2ZOt8
18 https://sfmohcd.org/community-opportunity-purchase-act-copa 19 https://www.sfchronicle.com/bayarea/article/City-officials-want-landlord-to-delay-sale-of-76-15002958.php

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offer, the qualified nonprofit also has a right of first refusal to match a competing offer.

At closing, deed restrictions are placed on the building restricting the building to affordable housing for the life of the building with a mean value of rents not to exceed 80% AMI.

The building could eventually be transferred to tenant ownership under a Limited Equity Cooperative or other model, as long as permanent affordability deed restrictions are maintained. The ordinance includes incentives, including partial exemption from the City’s transfer tax and the potential for qualified nonprofits to facilitate sellers’ efforts to obtain federal tax benefits.

San Francisco will set aside $40M – 90M in a specific MOHCD fund to support first time home buyers and its Small Sites Program that could also support the COPA ordinance.

This fund provides resources for deposits, down payments and bridge loans until permanent financing is in place.

Oakland TOPA
Inspired by the Moms-for-Housing advocates, on January 30, 2020 at the Oakland City Council’s Rules and Legislation Committee meeting, a TOPA ordinance was introduced and is scheduled for a vote in the Community and Economic Development Committee in March 2020. From there it could go to a full City Council vote.20 Oakland Mayor Libby Schaaf has already expressed support for the ordinance.

The Oakland ordinance has been developed since 2018 by a group of community land trusts, tenant advocacy organizations, and the East Bay Community Law Center, whose draft ordinance for Berkeley provided a foundation for Oakland’s ordinance. The Oakland ordinance largely mirrors this proposal but will also reportedly include a COPA option for non-profits to buy vacant properties.

The political will for TOPA in Oakland was prompted by Moms 4 Housing — a group of homeless women who took over an empty, investor-owned house in West Oakland for two months before they were evicted and arrested. Their actions garnered national attention and symbolize the Bay Area’s housing and homelessness crisis.

Since the eviction of the Moms 4 Housing, the property owner has agreed to negotiate to sell the house to the nonprofit Oakland Community Land Trust. They have also agreed to give the land trust or other nonprofits a chance to buy dozens of other single-family homes it owns in Oakland.

New York State TOPA
At the end of January 2020, New York State Sen. Zellnor Myrie, who represents Central Brooklyn, announced that he is in the process of drafting new legislation that would give 20 https://www.mercurynews.com/2020/01/30/oakland-councilwoman-to-introduce-moms-4-housing-inspired-ordinance/

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tenants the first right to buy their landlord’s property should it come up for sale. Myrie stated that “Landlords who claim they will be unable to keep their buildings in good repair or cover the cost of capital improvements” would have an opportunity, in the New York rent-regulated market, to “keep tenants in their homes, create a path to ownership and maintain buildings,”
This Tenant Opportunity to Purchase Act is said to be modeled after right-of-first-refusal statutes in Washington D.C.21
Financing for TOPA projects
Financing for TOPA projects is expected to be provided from a combination of city subsidies, the private capital of tenants, and loans from community-oriented banks and lending institutions like credit unions, CDFIs, local banks, future public banks and others. In this sense, TOPA effectively leverages both private and public financing in advancing permanent affordability.22
Subsidies
In order to make TOPA effective and responsive to the full scale of anticipated community needs23, the City will need to enlarge the current Small Sites Program (SSP), or create a new fund, to a minimum of $10-15 million dollars per year and reconfigure SSP guidelines to align with TOPA. While TOPA projects can benefit from existing streams of affordable housing funding, the scale of community need far outweighs the existing funding sources. As demonstrated by the case of the D.C. TOPA, it was only with substantial financing added to its Housing Production Trust Fund that the ordinance became an effective way to prevent and fight displacement - DC has an annual $116M for their Housing Production Trust Fund (HPTF), with a minimum of $10M set aside for TOPA projects. However, D.C. typically spends more out of its HPTF on TOPA - in FY2018, DC spent close to $22.5M on TOPA acquisition projects with additional funds for rehab in some instances (449 units over 9 projects). Without similar enhancement of SSP, or another funding source, TOPA will not be able to produce the necessary impactful levels of affordability needed to meet the crisis, particularly for those 21 https://therealdeal.com/2020/01/31/bill-make-landlords-give-tenants-first-shot-to-buy-buildings/ 22 While financing percentages of each project may vary substantially according to building costs, tenant resources, and subsidy availability a combination of these financing streams is expected to be a part of most if not all TOPA projects. 23 2019 real estate transaction data for Berkeley show that approximately 250 multi-unit buildings (duplexes and up) sold. Assuming similar sales volume and that a similar percentage (32%) of tenant groups exercise their right to purchase as under the D.C. ordinance we anticipate potentially 80 projects annually, with a greater number of smaller unit buildings participating than occur in DC.