EPA-OPA Facilitation Summary Report
Summary of PCRC Role:
Benjamin Toney, with Partnership for the Bay’s Future, and Karen Camacho, with Community & Economic Development Department (Housing Division), reached out to PCRC to explore facilitation services for a community meeting in late May. In the initial inquiry form, Benjamin stated that he is a Housing Policy Fellow supporting the City of East Palo Alto and multiple community-based organizations working on affordable housing and homeownership. Benjamin also mentioned that misinformation had obstructed the ability to discuss the facts and details of the policy with the public. Benjamin also acknowledged the urgency and short time frame regarding this request. The request was for PCRC to facilitate this in-person meeting. Anthony Thomas, PCRC Manager of Community Services, met with Benjamin and Karen to further discuss the details of the requested service.
From this conversation, PCRC recommended the following services:
● An initial two-hour facilitated Community Forum supported by PCRC. Tuesday, May 30, 6-8 pm at Cooley Landing (2100 Bay Road, East Palo Alto) o Community Agreements, Acknowledgment of misinformation and feelings ▪ Stating the intention to get folks at least on the same page about the facts o Present the background (what is the policy; what are the policy objectives and goals; quick policy facts and details; name intent of meeting) o Listening session: understand the policy
o Discuss ways in which misinformation can be dealt with if it happens again o Clarify next steps
● A two-hour facilitated Policy Discussion supported by PCRC. Tuesday, June 13, 6-8 pm at Cooley Landing (2100 Bay Road, East Palo Alto)
o Clarify the history of the policy and City process
o Implementation of next steps
o Community Feedback
Throughout the process, PCRC made the following recommendations that were executed by the City Staff:
● Focus on connecting with community members
● Speak clearly with minimal jargon or acronyms
● Show empathy when possible
● Be sure to speak “To” not “At” the community members
● Don’t persuade, just aim to teach/inform
● Ask clarifying questions, restate, and summarize
● Avoid small print in your slide show presentation
● When presenting, watch your pace, take your time and check for understanding ● Find opportunities for connection with Community Members ● For safety reasons and accessibility, the second meeting should be virtual ● Time must be carved out during the second meeting to respond to Community Member clarifying questions
East Bay Community Forum Questions / Comments / Concerns:
May 30, 2023
East Bay Community Forum Questions / Comments / Concerns May 30, 2023
Communication:
How were EPA members notified about these two meetings? Who is Dinan( blast email person)?
What in the future remedies to avoid this kind of no / lack of communication? No Link to the actual draft OPA Ordinance on the site.
Misinformation:
Concerned about misinformation that’s circulating around and how does the city plan to address that? Research Related Questions:
The results of the research just show the Pros of the policies and what about the cons? Want to see the math behind this process before, during and after? What city has used this policy and how did that workout? Want to know the case studies of this policy.
Has the city contributed to the economic analysis and impact of the policy? Need more data that shows research on similar situation cities like single family homes ? Why did the city choose single-family houses over multifamily housing? Want to see a demonstrated approach that this policy works.
Funding:
Who is funding this OPA program?
What is the cost of this policy?
How is the city allocating the funds? ( BUILDING MORE HOUSING) (down payment assistance, OPA, ADU.JADU Loans)
Policy Clarifications:
Need summarization on the difference between OPA and the usual Market approach.
Any tax advantage if selling for below market price.
Is there any opportunity for the absent homeowner to return to the home for a period of time & avoid the opa restrictions?
Define Residency of the homeowner?
After purchase, who maintains and pays the property tax if the tenant isn't the total owner? Does a resident homeowner have to wait for 15 days for right of refusal? Clarification on owner occupied vs Absentee landlord.
RoFR -explanation of the single resident ownership - steps for seller Language change - Homeowners that live in homes ( owner occupied ) for some period of time (10 years) could rent out their home for up to 10 years without any restrictions under OPA.
Explain Tiebreaker?
Why can't a tenant make an offer w/o opa?
How does OPA not impact the fair market as buyers are driven away? What is the criteria for a tenant to be granted the opportunity to purchase through OPA? - Tenant Qualification? ROFR Process not clear- need explanation
Can I move from an owner occupied home ( for medical or financial reasons) for some time and not fall under the OPA?
How does OPA protect the seller's rights to initiate a sale? Define the Price?
What does Local ownership mean?
If a home Is purchased by a Non-profit, how does that affect the tax revenue for the city? Who will be affected by this policy? Single family houses or Multi family houses? What are the 8 exemptions?
What qualifies homeowners to be exempt from Opa?
What is the penalty of the person who sells the property outside the OPA? When a tenant buys the property from the owner through OPA, does the tenant also sell the house through OPA? Tenant owned but if NP assists with the payment or down- who is on title? Does the policy affect homeowners who are residents wanting to sell? Is the city planning on including frequent reviews and community reports on OPA? How does the city consider the negative impact on the homeowners if OPA is passed? Are there alternatives considered to directly help tenants instead of hurting the sale price for owners Is the city considering applying OPA only to multi family units rather than all types of units? Does OPA favor current renters but not future generations of renters? Why would you make home owners exempt from OPA and make landlords subject to OPA? What are the impacts of the policy?
What Is the definition of affordable housing?
How will this affect the homeowner who owns townhouses/condos? What if more than one home is owned? And these were homes that were inherited. What protections do people get from this policy?
What qualifies for local ownership exemption?
What qualifies for medicine and financial exemption?
How will the non profits be selected?
What are the incentives for homeowners?
What solution will be in place from the organizations to support repairs for new OPA owners ? Who is responsible for Property taxes or maintenance?
What happened after OPA? Who owns the house and the responsibilities with it? How will OPA help tenants ?
Explain the right of refusal and its timeline?
If a non profit or tenant makes a below market offer, does the owner have the right to refuse the offer and go to the open market?
Does the system allow owners to put in the market and get bids and then reach out to the renters? Market Price:
Any Limitation on the house usage that can reduce the market value? How is the home purchased at market price considered appropriate? How can I live in it? How does the policy affect the property value?
Is there a loss of tax revenues?
Why is the City confident about tax revenue from this policy? How does ROFR not depreciate the market value?
How is market value established?
Why can't non-profits pay market rate?
How does the city determine the market rate or market price? Need to understand the sale & ROFR? The policy language " the right to define the price that makes an offer acceptable" is not appropriate and needs more clarification
Buyers will refuse to buy if there are any restrictions on the future market price? How to deal with that? Will the city or non-profit buy at market price without influence or interference? Doesn't this policy affect the property value of the owner occupied homes too ? How is opa planning to protect the value of the home?
selling at market price is variable as the multiple bids will change the market sell price? Other Concerns:
Can this policy be put on the ballot for the homeowners to vote? What other affordable housing does EPA have?
What is the %of people that rent Vs. homeowners within EPA? Slide 9 needs more clarity?
Timeline:
Would like to see the entire process be shortened to 90 days max? Why can't notifications of parties happen simultaneously ? Why one after the other? How long does nonprofit have to make an offer?
What is the escrow period? Is the deposit non-refundable? I need more clarity on the timeline of the entire process For a landlord, is the 30 day notice required?
A compilation of names, timestamp, and questions/comments from the June 13 meeting submitted via the Google Form.
Timestamp
Full Name |
Nombre
Completo Please share your clarifying question. | Por favor comparta su pregunta. 6/13/2023
18:21:58 Victor Chou
Where can I find the information about who proposed this OPA and who was the sponsor in the city council of this proposal?
6/13/2023
18:22:41 Victor Chou
When a non-profit sells the house, does the tenant have first refusal right and notification prior?
6/13/2023
18:23:57 Gina Wolf I was late. Sorry. Is this program different from the one last summer? 6/13/2023
18:24:54 TVines Please define a tenant given that multiple people live in rentals. 6/13/2023
18:25:00 Gina Wolf Will this presentation be available after tonight? 6/13/2023
18:26:44 Zaineb
Why OPA and not simply invest in building new affordable housing? Any ordinance like OPA will impact housing prices by lowering comps and decreasing demand, as buyers and investors will prefer a free market.
6/13/2023
18:29:07
Elena
Kogan
When do I have to give tenants the opportunity to buy? IN the beginning of the 60 days notice, or after it?
6/13/2023
18:32:43
Gail
Wilkerson
Authorities that will be going through the process: how are they chosen and WHY Them and NOT anyone else? Why are others excluded in the process? Is this Arm's length?
6/13/2023
18:33:16 Randy
What happens if a single family home owner leaves their house for study or work or to care for a relative and then they will be absentee owners even if that’s the only house they own and will be impacted by OPA, delaying the sale and impacting the price. have such cases been taken into consideration?
6/13/2023
18:33:28
Anna
Romanovsk
aia
As mentioned, the City wanted to make informed decisions. City wants to adopt OPA for SFH. Can you share the data/research from the US that prove that OPA was a successful tool for anti-displacement? It appears that there is no proof of this. If so, why does the City choose to implement OPA for single family homes in the first place? 6/13/2023
18:34:31
Tracey
Ramirez
What if the tenant is the reason the homeowner is forced to sell. Will the homeowner still be mandated to follow these guidelines and have to offer the property to the current tenant
6/13/2023
18:35:16
Dionis
Papavramidi
s
Why not let the tenant go through the usual process without keeping a 60 days delay for the seller?
6/13/2023
18:35:18 Gina Wolf Is it still up to 120 days to get the financing to buy the property? 6/13/2023
18:36:40
Gail
Wilkerson
Why was it chosen that you use this COLD distant from the public? Why can't you handle RUDE people with lots of passion? You could have the Police standing by and to have them ousted. This cold presentation is NOT helpful. All you sound like are WORDS.
6/13/2023
18:38:15
Jeannie
Llewellyn
How much is available from the city for funds to tenants to buy a property? What criteria does the city use for qualifying a tenants buyer? 6/13/2023
18:39:13 TVines No proof of exemption is needed?
6/13/2023
18:39:38 Yi Yuan
So if as owner, I can reject offers that my tenant or non profit organization makes to me, then what is the point of notifying them to purchase first? why can't they just do it in the open market? What is the point of OPA then?
6/13/2023
18:40:29
Xiaoguang
Chen What does you mean by "Local" when marking house
6/13/2023
18:40:35
Brenda
Erwin
By allowing nonprofits to purchase SFHs and create unprecedented BMR SFHs how do you ensure you're not artificially decreasing property values here in EPA? 6/13/2023
18:40:46 Max Kiang
Other than the benefit to renters, do you have any analysis on the impact to the sellers/owners?
6/13/2023
18:40:47
Elena
Kogan If my house is rented room by room, to multiple people, whom do I give a notice to? 6/13/2023
18:41:04
Jeannie
Llewellyn How much would OPA cost to run? Where will those funds come from? 6/13/2023
18:41:54 Sean Ripley
Regarding exemptions: what percentage of EPA homes do you expect to be exempt from OPA's requirements?
6/13/2023
18:42:24
Jeannie
Llewellyn
Why would I need to justify selling my place (medical, family, etc.)? In the open market, I don't need to explain anything.
6/13/2023
18:43:23 Tracey
why isn't the tenant going through the market process without the City deadlines being imposed on the homeowner
6/13/2023
18:44:57
Borys
Senyk
Large cities dropped single family homes from their OPA. How will EPA prevent the abuses that caused this and how will our small city manage this, as other cities with larger resources could not?
6/13/2023
18:45:18
Sabrina
Ellis
Will OPA bring down the price of the home so it can be purchased by the tenant or can the owner sell at the price they choose to the tenant or whomever? 6/13/2023
18:45:31 Tracey What is the benefit to homeowners
6/13/2023
18:46:11 Erica Prado Why is the City focused on Single Family Homes? 6/13/2023
18:46:23
Federico
Andrade
Why Is the funding from Chan-Zuckerberg requiring only EPA to implement OPA in San Mateo County? It seems like other cities like Redwood City, San Mateo, etc are not spending resources on this type of ordinance. This looks like those corporations are trying to keep and legalize yet more redlining.
6/13/2023
18:47:20
Tracey
Ramirez
Selling my home using this process will cause me delays and cumbersome red tape. If the city is supporting the tenants there should be a process just for the tenants.
Homeowners should be forced into this process.
6/13/2023
18:48:15
Varsha
Likhite
1. What are the criteria for tenants to qualify for OPA? Number of years at the house or Income levels. 2. How will low income tenants finance repairs needed for a number of older EPA homes.
6/13/2023
18:48:37 Tracey
Medical exemption should should not need personal details The HIPAA restrictions should apply
6/13/2023
18:48:47
Jeannie
Llewellyn What's in it for a seller to say they need exemption from OPA? 6/13/2023
18:50:05 Martin What is the penalty for tenants/non-profits for a bad-faith offer? 6/13/2023
18:50:34
Anna
Romanovsk
aia
Looks like OPA objective narrative shifted focus to making properties more accessible to nonprofits by lowering property prices.
First, nothing is holding non-profits from buying on the open market. I know at least 2 houses nearby that are on the market for several weeks. What prevents non-profits from buying those houses?
Second,
Looks like OPA is marketed by the City now as a tool for lowering home prices in EPA and not the tool to prevent displacement.
It contradicts the previous reassurance from the city that house prices will not be lowered due to OPA.
Can you explain this contradiction? To me it looks like now the city knows that it wants to adopt OPA to lower the home prices. If so, can the city need to communicate it to the home owners? Many homeowners will not adopt OPA if the city will be transparent on OPA objectives.
6/13/2023
18:50:38 Anna
Does the tenant have any responsibility if he/she provides a letter of intent and after 30 days is unable to buy?
6/13/2023
18:51:20
Xiaoguang
Chen
Not Sure why you don't answer my question. Let me re-submit and elaborate. One of you mentioned the OPA requires the owner to first advertise in the LOCAL market first before the open market. Here: how is the LOCAL market defined: East Palo Alto only? or San Francisco Bay AREA. How does this even work ? when you have MLS, Redfin and Zillow marketing.
6/13/2023
18:52:04
Jeannie
Llewellyn
Regarding if a NP helps a tenant buy a property - who is on title? Who pays the property tax? Who handles the maintenance and repairs, modification? Who will take the income tax filing benefits from deductions of the repairs, etc.? 6/13/2023
18:53:16
Jeannie
Llewellyn Please show the Case Study for 2+ units timeline 6/13/2023
18:55:04
Jeannie
LlewellyN
Since the CA law requires owners to give notice for 60 days, owners of rental properties already have to fill out estoppel notices to tenants anyway without the benefit of OPA. What or WHO would OPA REALLY benefit and how?
6/13/2023 Stewart Can you please SEQUENCE the OPA steps to purchase a home? I thought it was First 18:55:44 Hyland 30 days a) within the 30 days a 5-day notification of interest to purchase, Second 30 days a) right to match or better a counter offer?
6/13/2023
18:56:41 Gerry Kwok
How much does it cost to set up & run OPA ?
Where does this $ come from ?
6/13/2023
18:58:14
Vanessa
Smith
If the tenant does not submit a statement of interest within 60 days, what happens? If the homeowner goes with the tenants offer, but does not close in 30-days, what happens?
6/13/2023
19:00:38
Farshad
Momeny
How long would you need to find out if the plan is working or not? And what does it take to reverse if things are not working as expected. What would it consider a failed plan? How do we know?
6/13/2023
19:01:13 Maya Brusil Contingency
6/13/2023
19:01:16
Jeannie
Llewellyn
With so many exemption possibilities (8), what specific properties would definitely NOT be exempt?
6/13/2023
19:02:39
Michael
Mashack You all are clarifying the questions!
6/13/2023
19:03:23
Borys
Senyk
In the case of COPA, if an organization acquires a single family home at market price, that is likely higher than the previous purchase price. The current rent is likely based on the lower price. Will the acquiring organization absorb the higher cost to maintain the current rent? Or perhaps there is another way to prevent displacement in such a scenario? Additionally the building may need repairs and/or improvements. 6/13/2023
19:03:50 Emily
What has the impact been of the DC model of OPA? Do you expect the same or similar impact in EPA? What learnings will EPA be taking from the DC model? 6/13/2023
19:03:56 Kelly Witt
Palo mobile estates should be exempt from city or non profit ownership; as the condo conversion states the goal is for the ownership of the manufactured home/condo land plot to be resident owned.
6/13/2023
19:04:30 Yi Yuan
My house has been rented to multiple single persons (not a family) since day one, and they never show interest in buying the house together. Do I still need to ask them and wait for 30 days?
6/13/2023
19:07:31 Emily What financial gain do you anticipate EPA will benefit from as a result of OPA? 6/13/2023
19:07:42
Elena
Kogan If I live in the house and rent out one room, does OPA apply to me? 6/13/2023
19:08:08
Anna
Romanovsk
aia
How does the OPA policy handle cases where savvy tenants may take advantage of elderly homeowners that are not aware of their home current value? 6/13/2023
19:09:10
Jeannie
Llewellyn
It seems that OPA assumes all tenants must move but if they are in a multi-unit property, this doesn't make sense (60 days before tenant needs to move as stated in the slide)
6/13/2023
19:11:12 John Cooley
How does the ROFR process ensure that a statement of interest isn’t transferred from the initial entity I.e. tenant to other third party entities? 6/13/2023
19:17:32 Jeannie Ll
All the scenarios seem to point out that OPA really doesn't have much effect. All ROFR is an option already in place. What exactly does OPA offer besides the obviously prior statement Benjamin made? Where does any Non-Profit come in? 6/13/2023
19:20:31 Jeannie L
When ROFR is exercised, what if the 3rd party is also a new home buyer? What if the 3rd party is all cash vs the ROFR?
6/13/2023
19:21:17 Emily
Are buyers able to pursue other homes during this process, or is this process limited to one property at a time?
6/13/2023
19:22:21 Emily
Are there any safeguards in place to prevent third-party buyers from submitting an offer they know a local buyer wouldn't be able to reasonably match during the 5-day tiebreaker period?
6/13/2023
19:22:46 Zaineb
How do you stop tenants from purposely taking advantage of OPA without real desire or financial capability to place an offer? Is there a non-refundable deposit just like any buyer making an offer in the open market? Such abuses have been reported in DC 6/13/2023
19:23:08
Gautam
Chandhoke
Buying any item is about presentation. The same is true for the house as well. Why would you make the interested parties hold me hostage? I would rather have everyone one out make renovations and maximize my return. Why are you taking away my rights?
6/13/2023
19:23:17
Grace
Popple
An offer doesn't just contain a price. It also contains things like loan contingencies, inspection contingencies, closing timelines, perhaps rentbacks. Does the "local purchaser" need to match the other offer conditions or just the price? 6/13/2023
19:23:34
Xenia
Hernandez
So if both the third party buyer and local buyer make the same offer is the landlord obligated to choose the local buyer or can they still choose the third party buyer? 6/13/2023
19:24:08
Dr. Maria
Cruz
Why are we discussing this again when the majority of EPA disagrees with this policy that the City council is pushing. NO ON OPA!!! This is not the solution to low income housing.
6/13/2023
19:24:11
Grace
Popple
If the City is unable to set up and read an automated alert about a sale in the City through Zillow or Redfin, why do we think they will be able to handle the incoming messages about OPA notifications?
6/13/2023
19:25:28 Zaineb
How do you ensure that tenants don't take advantage of OPA and just submit notices without any intention to purchase? Non-refundable deposit in one way. Such abuses have been widely reported in DC where similar ordinance was issued. Due to those abuses, single homes were later exempt in DC.
6/13/2023
19:25:30
Gautam
Chandhoke
What happens if I put the house on the market? Go through the whole process but then decide not to sell (or close).
6/13/2023
19:25:47 Qing Xing
In the case of the same offer price 1.1 million, what if the 3rd party offer is Non-contingent while the local offer has contingencies? price is not the only thing for the seller to decide on an offer.
6/13/2023
19:28:15
Yogesh
Patel Is there a limit on how many houses a non profit can own? 6/13/2023
19:28:31 Stewart
Please use this example to give concrete examples of resources & education that will enable tenants to take advantage of the OPA opportunity if passed. 6/13/2023
19:30:39 Sean Ripley
Regarding the various scenarios: With multiple offers, percentages, and tie-breakers, it seems like there would need to be oversight or observation of each sale - are the real-estate agents responsible for proving compliance? Is city staff or an authorized non-profit reviewing sales? Who makes sure these steps are being followed? And what happens when a local buyer believes the home has been wrongfully sold to a third-party?
6/13/2023
19:31:01
Gautam
Chandhoke
You are talking about all these processes to be implemented like OPA. Please allow me to point out that the meeting ID printed and published on the notice board of the city building today is not working. Why should the residents trust you to do these things? 6/13/2023
19:32:20
Sergey
Romanovsk
y
What is the supporting research behind the decision to introduce OPA? What is the expected advantage for tenants? What is the expected loss for homeowners? 6/13/2023
19:36:47
Gautam
Chandhoke
Instead of OPA why not come out with the process where the homeowner is required to only inform the renter and other parties of the sale. Once put in the MLS they all can compete and if they can they will get the property.
6/13/2023
19:38:42 Emily Are new-build homes on a parcel of land owned by an EPA resident exempt? 6/13/2023
19:47:05
Gautam
Chandhoke
Assuming the tenant receives the property under OPA. After getting the property, they put it back in the market. Assuming they had been living for over a year as renters, now they will have the option to make repairs and upgrades and sell at a higher price. So now the city is making the original owner loose whereas making the renter gain. Is that the idea?
6/13/2023
19:50:00 Elena How is market price determined?
6/13/2023
19:58:01 Gerry
If the OPA policy ensures the seller gets the best price that the market can offer, how does the OPA policy help the tenant to be competitive? If the OPA policy can indeed be competitive, why not just help the tenant to buy a house on the open market instead of creating a new policy that the city has to administer?
6/13/2023
19:58:11 TVines
Does the tenant have RoFr if they have not complied with the T&Cs of their lease such house is in disrepair, delinquent in paying rent.
6/13/2023
20:01:16 Elena Why not exempt all single family homes from OPA, just like in San Francisco? 6/13/2023
20:05:33 Chris Matt
Is it obvious that the Opportunity to Purchase Act is a misguided piece of legislation that undermines the principles of free markets, personal property rights, and economic efficiency? It restricts the ability of property owners to sell their assets freely, introduces unnecessary complexities and delays, and fails to address the underlying issues affecting housing affordability. Furthermore, it would cause house provider to be more selective, which would inevitably make it harder for tenants to find a place to live in EPA.Instead of burdening property owners and distorting market dynamics, policymakers should focus on promoting policies that encourage investment, remove barriers to housing supply, and foster healthy competition, ensuring a vibrant and accessible real estate market for all.
6/13/2023
21:35:12 Vivian May
What benefit does including SFH provide? Do we have evidence that won't prevent developers from building more homes?
A compilation of names and questions/comments
from the June 13 meeting submitted via housing inbox.
Full Name |
Nombre
Completo Please share your clarifying question. | Por favor comparta su pregunta.
Alice
Do you have any real-world data as to how many tenants would be interested in/able to purchase the home they are living in (in EPA)? Have you done a survey? Borys Senyk
Large cities dropped single family homes from their OPA. How will EPA prevent the abuses that caused this and how will our small city manage this, as other cities with larger resources could not? Is there any specific evidence that tenants in single family homes were recently displaced due to being uninformed or otherwise excluded from the sales process? In the case of COPA, if an organization acquires a single family home at market price, that is likely higher than the previous purchase price. The current rent is likely based on the lower price. Will the acquiring organization absorb the higher cost to maintain the current rent? Or perhaps there is another way to prevent displacement in such a scenario? Additionally the building may need repairs and/or improvements
Carol
Cunningham Please explain why ROFR is problematic.
Chris Moore
In Scenario 2, What happens if there is not an agreement on the sale price - I can go to market? Also, with the initial 30 day wait period, can the team explain how it will impact 1031 transactions with buyers that want to make 1031 transfers? Chris Moore
The issue is not with the seller regarding 1031 exchanges. The issue is with the buyer that wants to make a 1031 exchange in the EPA market. It's very common that a potential buyer is doing a 1031 exchange from a sale they already made. They may only have 30 days left to select a property to purchase to fit with the 1031 guidelines. THe OPA process prevents the seller from guaranteeing that they can sell the property to the 1031 buyer. Therefore, this program will eliminate the 1031 exchange market in EPA. Has a study been performed on the number of 1031 exchanges that are done in EPA?
Court Skinner What is the probability of someone owning 8 homes if SOPA passes? Court Skinner How do the timelines proposed compare to those in the open market? Court Skinner What is the probability of someone owning 8 homes if SOPA passes? Court Skinner What will be the impact on a homeowner who flouts OPA? Court Skinner
If OPA becomes law in EPA will it not have an impact on all homeowners including the legacy folks. It may be difficult to determine. Were there any other approaches to making more homes available to tenants to purchase other than this incredibly complex approach that will inevitably have a negative impact?
Gail Wilkerson
What stops discrimination against one Demographic as opposed to the sellers chosen? Do you answer questions at all about this?
Gina I believe the 120 days is for a single family home.? Gina
Is the time still 120 days for people to get financing? Does the owner have to wait 6-months or can they refuse?
Gina
If a single family home owner refuses the initial OPA offer, and a private party makes an offer, how long does the private party have to wait to find out if the city will match it? Do I have this right?
Gina
In past policies, if an owner decides to market to a regular market, and an offer is made, the city then has a chance to match that private offer. Is that true? Gina How many days does the local buyer have to close if he matches in the 5-day window? Grace
Has the City considered setting up a *voluntary* notification system where owners can CHOOSE to inform the city, nonprofits, and tenants, about a sale, as a first step instead of mandating it? Why is mandating necessary here?
Jane Yao
What if you are a resident of EPA and you also have a SFH rental, does the city give exemption for the sale of the rental property ?
Jeannie
Llewellyn
Why do we need OPA? Why can't the EPA housing department help first time home buyers directly without interfering with the seller? Tenants already CAN buy from the seller - especially if they already have a good relationship. OPA just adds another layer of WORK for all for the sale of a property. If OPA is targeting a specific group / owner that REALLY needs to sell through OPA, why include all SFHs, duplexes, triplexes, etc.? Make OPA voluntary and give incentives to encourage people to participate. It would answer the question: "What's in it for me?" Joshua
Johnson
Why does the policy treat owners who live outside of the city differently than owners who live in the city?
Joshua
Johnson Does the policy contain a Right of First Offer, a Right of First Refusal, or both? Mark Dinan Why is the city including SFH in the ordinance when other ordinances only apply to apartments? Mark Dinan What will the impact of lower OPA sale prices have on comps used in mortgage qualification? Anonymous
What about families that have purchased multiple homes within the city and live in the city can they put their children's, and grandchildren's on the title of the other properties to be exempt from this? ( please don't say my name thanks)
Martin
What is the penalty for the bad faith offer from a tenant/non-profit with the intent of delaying the sale not for actually buying the property?
Martin
Can you give an example when a low income tenant can afford home ownership using TOPA? The average selling price for SFH in EPA is $1M. Consider how much downpayment, how much his/her emi would be and how much he/she resell the property. Whether those costs less than the average rent in EPA.
Martin
SF dont have OPA/COPA for single family homes and why are we bringing it up to justify copa here. DC for good reason exempted from their disaster COPA/TOPA policy and no other city has COPA/OPA in their city. Basically, EPA will be the first city and why are we comparing other cities when they don't have COPA/OPA for SFH.
Maya Brusil How will tenants decide what price to put an offer for? Maya Brusil What if the appraisal came lower than the offer price from a non-profit? Ofelia Bello
Can you talk a bit about how enforcement of this policy might be implemented? Would violations by property owners be mostly complaint-driven by the tenant? Even absent an OPA policy, I know of landlords who currently put their homes up for sale and don’t provide tenants a 60 day notice. Thank you!
Petra Shen
How OPA helps tenants to buy houses? The answer that the city is going to help tenants with information does not help tenants to buy property unless the city provides financing. But OPA does not talk about financing. Then why do tenants need OPA to buy property? Petra Shen
If California law already requires you to notify tenants about the sale, why does the city need to duplicate it?
Q Smith
If possible:
Give a down to earth example of how this can benefit community legacy families where the elders are afraid OPA will make them lose their homes or the City or Non-Profits are trying to steal from the families. Please continue to give examples of family emergencies ( medical concerns - declining health concerns) of family members where homes are the wealth of the family.
Q Smith
How long does this program / ordinance stay in effect? Does, at the current time in the future, City Council have the power to change the ordinance or will this ordinance be changed by an election process (community)?
Q Smith How will the Non-Profits be selected?
Q Smith
Please restate “Who” has the authority to change the ordinance and how long it may stay in effect?
Rashit
1. Tenants already have 60 days to submit their offer first (California law) - why do you need opa for this?
2. Why cannot tenants come to the city seeking funds now? If this is an issue, you need to work on this mechanism, not opa.
3. Regarding the 1031 exchange, the answer is not satisfactory. Please get professionals to answer.
Rhona
Who are the third parties? Or investor(s) or Non profit parties? If the tenant can't purchase the property and the investor makes the purchase will the tenants rent be affordable? What’s in place to make sure?
Stewart
Hyland
fyi, in my question setup I provided examples 30-days, tenant must express interest...This was not transmitted in Anthony's question and not spoken to by Benjamin. If I submit another question I hope the details of my question will be relayed faithfully and not edited.
Stewart
Hyland
What are some of the resources that are currently available for first-time home buyers? So that we know if OPA has a pragmatic effect.
Taptango Why are nieces and nephews not exempt? Why does OPA not see nieces and nephews as family? Taptango
Can you share why the earlier version of the city’s OPA allows for a city-trained appraiser to set sales price?
Taptango
Can there be an exemption for 1031 exchange? If not, why? Many seniors are very concerned about 1031 exchange because after selling a place, there’s a limited amount of time to identify a new place to exchange into and unfortunately the OPA timelines significantly harm residents by impeding the 1031 exchange process.
Because of this, can there be an exemption for 1031 exchange? Taptango What is the number of city staff required to implement OPA? Wei Li
How will this help tenants if they can't offer market price and the house goes to the market anyway?
Vee S
The QR code to the form says that it’s deactivated.
If the tenant does not submit a letter of interest to purchase the home within the 60 days, what happens? If the tenant does not close in 30 days, what happens? A compilation of questions that were answered live:
Regarding exemptions: what percentage of EPA homes do you expect to be exempt from OPA's requirements? Why would I need to justify selling my place (medical, family, etc.)? In the open market, I don't need to explain anything.
Is the time still 120 days for people to get financing? Does the owner have to wait 6-months or can they refuse? In Scenario 2, What happens if there is not an agreement on the sale price - I can go to market? Also, with the initial 30 day wait period, can the team explain how it will impact 1031 transactions with buyers that want to make 1031 transfers?
Can you please SEQUENCE the OPA steps to purchase a home? I thought it was First 30 days a) within the 30 days a 5-day notification of interest to purchase, Second 30 days a) right to match or better a counter offer? Can you share why the earlier version of the city’s OPA allows for a city-trained appraiser to set sales price? If the tenant does not submit a statement of interest within 60 days, what happens? If the homeowner goes with the tenants offer, but does not close in 30-days, what happens? In the case of COPA, if an organization acquires a single family home at market price, that is likely higher than the previous purchase price. The current rent is likely based on the lower price. Will the acquiring organization absorb the higher cost to maintain the current rent? Or perhaps there is another way to prevent displacement in such a scenario? Additionally the building may need repairs and/or improvements.
If possible:
Give a down to earth example of how this can benefit community legacy families where the elders are afraid OPA will make them lose their homes or the City or Non-Profits are trying to steal from the families. Please continue to give examples of family emergencies ( medical concerns - declining health concerns) of family members where homes are the wealth of the family.
How will tenants come up with the price for the offer>? How long will the City consider exemption?
If I live in the house and rent out one room, does OPA apply to me? If my house is rented room by room, to multiple people, whom do I give a notice to? What is the probability of someone owning 8 homes if SOPA passes? What is the penalty for the bad faith offer from a tenant/non-profit with the intent of delaying the sale not for actually buying the property?
What if you are a resident of EPA and you also have a SFH rental, does the city give exemption for the sale of the rental property ?
Has the City considered setting up a *voluntary* notification system where owners can CHOOSE to inform the city, nonprofits, and tenants, about a sale, as a first step instead of mandating it? Why is mandating necessary here? How does the ROFR process ensure that a statement of interest isn’t transferred from the initial entity I.e. tenant to other third party entities?
Are there any safeguards in place to prevent third-party buyers from submitting an offer they know a local buyer wouldn't be able to reasonably match during the 5-day tiebreaker period? In the case of the same offer price 1.1 million, what if the 3rd party offer is non-contingent while the local offer has contingencies? price is not the only thing for the seller to decide on an offer.
Please use this example to give concrete examples of resources & education that will enable tenants to take advantage of the OPA opportunity if passed.
Are new-build homes on a parcel of land owned by an EPA resident exempt? So if both the third party buyer and local buyer make the same offer is the landlord obligated to choose the local buyer or can they still choose the third party buyer?
Can you talk a bit about how enforcement of this policy might be implemented? Would violations by property owners be mostly complaint-driven by the tenant? Even absent an OPA policy, I know of landlords who currently put their homes up for sale and don’t provide tenants a 60 day notice. Thank you! What happens if I put the house on the market? Go through the whole process but then decide not to sell (or close).
Why is the city including SFH in the ordinance when other ordinances only apply to apartments?