CCAR Leaders Seeking Legislative Solutions for CA Housing Crisis

AB 2710 Prohibits rental property owners from offering their property for sale unless they first offer it to so-called “qualified entities” (e.g., existing tenants and non-profit corporations). C.A.R. opposes the bill because it is unnecessary and harms small property owners.

Background  |  AB 2710, which applies to any residential multi-family property and any single-family home or condo that currently has a tenant, prohibits rental property owners from selling their property to someone other than a so-called “qualified entity” for up to almost one year. The rental property owner who wishes to sell their property must first provide a “disclosure package” to each “qualified entity.” Depending upon circumstances such as the type of property and the entity’s ability to secure financing, the bill provides that this process could potentially take anywhere from several months to up to almost 1 year. AB 2710 applies to most transfers of single- and multi-family property.

C.A.R. OPPOSES AB 2710 because it harms property owners that need to sell quickly due to personal circumstances. For example, a senior couple who needs to sell their property quickly in order to move closer to family or more robust medical care will be unable to do so under AB 2710. This bill hurts property owners in need.

It reduces home ownership opportunities for working families. Home ownership opportunities, especially for working families of color, have been negatively impacted by both the ongoing housing crisis and the COVID-19 pandemic. This measure will further reduce these opportunities, making it even more difficult for California’s working families to achieve the dream of homeownership.

It places undue financial hardship on property owners. Rental property owners wanting to sell their property will instead be forced to continue paying their mortgage and other property expenses for months and months, even if they cannot afford to do so, because they are prohibited from selling their property on the open market while a so-called “qualified entity” considers buying the property. This cycle may repeat itself if more than one entity expresses interest, barring the owner from selling the property on the open market even longer.

It exposes small property owners to cumbersome procedures and possibly to costly and time-consuming lawsuits. The notification process created by this bill is both complicated and burdensome, inviting potential litigation. Small property owners will need to keep careful records of each notification to each “qualified entity.” If an owner accidently loses their proof of notification to a single entity, at any point in the process, they could be vulnerable to a lawsuit.

Status: PULLED by author and removed due to C.A.R. member lobbying on Legislative Day