Santa Cruz Real Estate News

Site Editor: Maggie Barr, Realtor, Keller Williams Santa Cruz
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Santa Cruz City Council to weigh compulsory rental registry (Santa Cruz Sentinel)

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New housing-data collection strategy to be considered Tuesday

By Jessica A. York, Santa Cruz Sentinel
jyork@santacruzsentinel.com
PUBLISHED: February 23, 2020 at 3:30 p.m. | UPDATED: February 24, 2020 at 4:00 p.m.

Original article: https://www.santacruzsentinel.com/2020/02/23/santa-cruz-city-council-to-weigh-compulsory-rental-registry

FEBRUARY 25, 2020, SANTA CRUZ, CA >>> Seeking an accounting of the community’s rising residential rental rates, tenant turnover and challenges between renters and landlords, city leaders are set to consider a new housing data collection strategy Tuesday. In addressing a delicate and heavily contentious subject, the Santa Cruz City Council will consider authorizing creation of a new compulsory citywide residential rental registry and supporting fee, a move last discussed in August as a voluntary pilot program. To support such a program, a city council ad hoc committee is recommending the council authorize the hiring of a vendor to create a new electronic tracking and monitoring software system — with an initial $77,000 investment and subsequent annual $42,000 subscription fee — to collect community input on the type, frequency and detail of rental housing statistics that will be made available to the public.

Santa Cruz City Council (Shmuel Thaler — Santa Cruz Sentinel)

The council meets at 11:45 a.m. and 7:30 p.m. Tuesday 2/24/20 at City Hall, 809 Center St.

Since the council’s last rental housing registry discussion, state legislation dubbed the Tenant Protection Act of 2019 was passed. The law limits rent increases for many housing units to no more than 5% per year plus inflation, and requires that landlords document their causes for evictions from those covered units. Housing built within the last 15 years and single-family homes, including condominiums and townhouses which are owned by individuals, are exempt from the requirements.

“Staff and the subcommittee are hopeful that the Tenant Protection Act of 2019 has removed some of the local pressure around rent regulation and that landlords, tenants and advocates will be able to work together and with the city within the framework of the state law,” a report to the council reads. The agenda report is recommending setting a June deadline for the council to receive a formal ordinance to approve.

Last year, the council discussed making the program a reality by expanding its existing Residential Rental Inspection Service. While some changes to the city rental inspection program will be under consideration Tuesday, the database’s coopting for a general rental registry will not be among them. The council, however, will consider some measures to ease restraints on granny-flat rental owners, including the potential legalization of at least 400 of the 441 unpermitted rental units under city investigation, due to recent state legislative changes. City staff also will create two new informational brochures pointing tenants to various city and external resources and rental information.

Full Article: https://www.santacruzsentinel.com/2020/02/23/santa-cruz-city-council-to-weigh-compulsory-rental-registry

This entry was posted in Government & Regulations, Real Estate Investing and tagged , , , , , , .

Santa Cruz County enacts moratorium on no-fault evictions (Sentinel)

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Ordinance aims to protect tenants until new state rules take effect Jan. 1

By Nicholas Ibarra, Santa Cruz Sentinel

Original article: https://www.santacruzsentinel.com/2019/11/05/santa-cruz-county-enacts-moratorium-on-no-fault-evictions

NOVEMBER 5, 2019, SANTA CRUZ, CA >>> Santa Cruz County became the latest jurisdiction to enact a moratorium on no-fault evictions Tuesday amid concerns that new protections for California tenants are leading to a wave of evictions before the rules take effect Jan. 1.

Under an urgency ordinance unanimously approved by county supervisors, thousands of tenants in the unincorporated county are protected from eviction without just cause through Dec. 31 — so long as they have rented an applicable home for at least a year.

Tenants who have already received an eviction notice, but have not yet moved out, can contest their eviction under the temporary moratorium. “We’re going to keep people in their homes that deserve to be in their homes,” said 2nd District Supervisor Zach Friend, who proposed the ordinance with 3rd District Supervisor Ryan Coonerty. “Sending people out onto the street in this kind of housing market is not a solution for addressing anything that’s in the interest of the county,” Friend added.

The ordinance follows similar stop-gap measures approved Oct. 26 by the Santa Cruz City Council and a week earlier by the Los Angeles City Council. The rush to pass some form of eviction moratorium comes in response to Assembly Bill 1482, signed into law Oct. 8 by Gov. Gavin Newsom. Called the Tenant Protection Act of 2019, the law caps annual rent increases at 5% plus inflation and requires just cause to evict tenants until it sunsets in 2030.

Just cause for eviction includes violating a lease, failing to pay rent, or causing a nuisance — definitions mirrored in Santa Cruz County’s moratorium.

Also mirroring AB 1482, the county ordinance mostly applies to apartments older than 15 years. Single-family homes, apartments built within the past 15 years, and accessory dwelling units and duplexes where the owner lives on the property are exempt.

Eviction notices

Because AB 1482 doesn’t take effect until Jan. 1, tenant advocates claim some landlords are scrambling to evict tenants by the end of the year.

“We have people coming in who’ve lived in their units for 24 years, 19 years — people with disabilities, people with kids, people with high-risk pregnancies — where their entire complex, everyone in their complex, is being evicted so that the landlord can raise the rent in January,” said Gretchen Regenhardt, an attorney with nonprofit California Rural Legal Assistance.

Cynthia Berger, who runs the Santa Cruz Tenants Association Hotline, said she has seen an uptick in calls from tenants in the process of an eviction after the passage of AB 1482. “This is what always happens when you have a public discussion on rent control,” Berger said. “The hammer comes down and it’s like tenants are like mice to be squashed.”

Aptos resident Virginia Voinea, 63, is among those who have reached out to the Santa Cruz area hotline following an eviction notice.

Voinea said she has lived in her Seacliff apartment complex for 13 years with her adult disabled son. On Sept. 23 — soon after AB 1482 passed the state Legislature — she said she received a 60-day eviction notice.

The notice cites plans to remodel her unit, according to Voinea, but she said she has reason to be skeptical. “I don’t have any options,” Voinea said. “I may end up on the street with a boy that’s never been on the street in his life.” Voinea briefly shared her story with supervisors prior to the vote on the tenant protections Tuesday. Her eviction was referenced by Friend, the 2nd District supervisor, prior to the vote on the moratorium.

“This is happening right here in our community right now,” Friend said.

Tenants at a Capitola apartment complex, who are not protected by the county’s moratorium, have raised similar concerns about recent eviction notices that similarly cite remodeling plans.

The Capitola City Council is scheduled to consider a no-fault eviction moratorium at a special meeting 6 p.m. Wednesday.

This entry was posted in Government & Regulations and tagged , , , .

Santa Cruz approves new beach-area condo, commercial project (Sentinel)

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By  | jyork@santacruzsentinel.com | Santa Cruz Sentinel

Original article: https://www.santacruzsentinel.com/2019/10/23/santa-cruz-approves-new-beach-area-condo-commercial-project

OCTOBER 23, 2019, SANTA CRUZ, CA >>> A major beach-area condominium and commercial development earned the city’s blessing in a contentious split vote spilling into the early hours of Wednesday morning. Westside neighbors and environmental activists faced off over housing, union and developers’ advocates related to the planned construction of a four-story project on a surface parking lot operated by the adjacent Dream Inn. Both properties are owned by Ensemble Real Estate and Investments. Nearly 50 speakers voiced their evenly divided opinions for an hour and a half before council members spent nearly the next two hours debating the decision.

“I think we have to remember that Santa Cruz is not only one of the least affordable places in the nation – it’s internationally,” said Mayor Martine Watkins, who voted to approve the project. “And we need to, as a council, figure out a way to balance process and to be in action. For me, I feel that it’s imperative that we take action.”

Santa Cruz City Council approved a four-story, mixed use building for the Dream Inn parking lot. (Dan Coyro — Santa Cruz Sentinel file)

The 47-foot tall mixed-use structure, to be located at the corner of West Cliff Drive and Bay Avenue, will include twofloors of underground parking, an outdoor public plaza and Dream Inn and public amenities such as a spa, fitness gym, café, retail market and hotel administrative offices. Because the applicant is seeking a coastal permit, the City Council’s project approval is subject to potential appeal before the California Coastal Commission.

Environment, safety concerns
Project opponents, many who live near the project side or affected by potential traffic backups along West Cliff Drive, demanded a more thorough environmental review of the project, raising concerns related to issues such as cliff seismic stability, pedestrian and bicycle safety, emergency response access and tree removal. Council members Sandy Brown, Drew Glover and Chris Krohn supported community requests to delay the project for the full environmental study, but did not earn enough support from their peers to pass the motion. Residents of the 68-unit Clearview Court Mobile Home Park, arguably the most directly impacted by the large development, protested over intensified construction and site operational sounds and vibrations, loss of sunlight, view and personal privacy and decreased property values.

Speakers opposed to the evening’s agenda item offered a range of reactions to the project, some saying the development could be a good one if all the studies were done, or should eliminate the ground-floor commercial so as to limit its public draw. Others said they did not want to see the site, currently serving as a private Dream Inn surface parking lot, developed at all.

Resident Scott Graham warned of “pirate developers” who “dangle affordable housing” and urged the council to approve a more palatable project that excluded commercial uses, while another speaker accused the city of backing a plan that “caters to the ultra-wealthy.”

“I’m in favor of affordable housing, but it’s not worth having affordable housing to pass a bad project,” Graham told the council.

Housing, job creation
Proponents cited a need for additional housing — including 10 out of 89 units to be sold at so-called affordable rates — and job creation. Supporters of the project included representatives from the Monterey Bay Economic Partnership, NAACP, Affordable Housing Now, Santa Cruz YIMBY. Some said that while 10 affordable housing units may not sound like much, they would represent a significant addition to the city’s small stock of such for-sale units.

Renter Kenneth Brown Sr. said that even after a full career, including retirement after 32 years at Santa Cruz Metro and 10 years at Salz Tannery, he still could not afford to buy his own home. He said he stood in support of the project.

“I’m the working poor, just like a whole bunch other of these folks here and I hear people saying, ‘oh, the rich people will get these houses,’” Brown said. “Maybe I need to get one of them, if the lord says, and maybe I’ll be able to afford one of them.”

Eastside resident Shelley Hatch said she had observed several city policies clashing in the proposed development.

“The goal of reducing greenhouse gas emissions will never be achieved if our city, Planning Department and staff continue to defend a project like that this one, that promises, at least, 1,552 car trips that will definitely be idling in bumper-to-bumper traffic for blocks or for miles,” Hatch said.

Evan Siroky, founder of the local Yes In My Back Yard group, said the council was required by law to approve general plan-compliant projects unless it makes specific findings negating an approval.

“Let’s get real. Every time a project like this gets proposed, four stories or higher, people say we need a full EIR, even though the city has already done an EIR, there’s been all these studies that have already happened,” Siroky said. “Every time people complain about the traffic, so much that it seems like providing housing isn’t really a priority.”

This entry was posted in Real Estate Developer News and tagged , , .

Fewer homes planned for Scotts Valley Town Green

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Press Banner staff report

Original article: http://www.goldenstatenewspapers.com/press_banner/news/fewer-homes-planned-for-town-green/article_8dd18b4e-3182-11e9-9cdb-63c259aab380.html

FEBRUARY 15, 2019, SCOTTS VALLEY, CA >>> The developers behind the Scotts Valley Town Green project are reducing the amount of residential units they are seeking and hope to start construction early next year. Town Green LLC held the last of four planned public meetings Feb. 7 at the Community Center. They talked about why the project had evolved from a retail center to a residential one in the more than ten years since the Town Center Specific Plan was first drafted. “I think everybody realizes the retail environment’s changed so we’ve adapted our plan to what we think will stand the test of time,” Doug Ross, a principal with the developer, said referring to the rise of Amazon and other online retailers. After being questioned by a community member, Ross talked about why that change is necessary.

“There’s no question that close to half, or more based on surface area, of this project is residential because we need that economic engine to pay for all these improvements, pay for the town

The proposed space for the Scotts Valley Town Center remains vacant.
Photo by David Leland/Press Banner

green and provide a community facilities district so we can maintain this without any additional burden to the city,” he said, referring to not increasing taxes or fees to pay for the Town Green. He also added that they have reduced the number of apartments and townhomes on the 13.5-acre site in response to public outcry expressed during three other meetings, 125 survey responses and meetings with 67 local businesses.

“What we’ve done over the evolution of these community meetings and other feedback is we have reduced our housing units,” Ross said. “Our proposal originally, if we were selected by the council, we had 310 units. We’re now reducing that density down to 225, 235 range depending upon our product mix. We’ve lowered the heights — originally had a lot of four-story buildings. Now the majority of our buildings are two- and three-stories.”

Ross told people at the meeting that the Town Green would be more than residences, describing a central point for social events. “We’ve got a large focus on food, beverage and entertainment because we think that will be the catalyst to draw people to the town,” he said, describing indoor and outdoor dining, a one-acre open green space for events and walkable street. “We’ve identified a potential anchor that we can’t disclose at the moment.” Another community member asked about the amenities that are already on the land, including the dog park. Ross said they were working with the city to relocate the dog park before construction.

The developers are also working with the farmer’s market to relocate there as well as Scotts Valley festivals. The plan’s architect, Jon Wordon, called adding a town center to an already established urban environment the equivalent of a “heart transplant” with all the preparation and care that goes with it. The developers must submit their plan, economic data, environmental impact report and other documents to the city by the end of March. The planning commission will then make a recommendation to the City Council, which has the last word about the future of Town Green.
“This process is going to continue and we want to get everyone’s input,” Ross promised. He said the group hopes to have final approvals by the end of this year and break ground by next spring. The affordable housing elements he said would be funded by tax credits and come after the main construction had begun. He said they were moving fast with one goal in mind. “What we don’t want is to create this great town green and then have it under construction for the next five years, have it as a noisy dustbowl.”

Contact the Press Banner at pbeditor@pressbanner.com or (831)438-2500.

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Silicon Valley workers snap up homes locally

Posted on Updated on

Tech industry employees invest in first and second homes within county

By Elaine Ingalls, Santa Cruz Sentinel

Original article: https://www.santacruzsentinel.com/2019/02/28/silicon-valley-workers-snap-up-homes-locally/

FEBRUARY 28, 2019, SANTA CRUZ, CA >>> The number of Silicon Valley employees seeking homes in Santa Cruz County is on the rise. Michael Kaufman, a realtor with Coldwell Banker in Los Gatos, was the buyer agent of one of the highest-priced houses in the county in January. The three-bedroom and four-bathroom house at 114 Central Ave. in Capitola, closed escrow Jan. 30 for $2.1 million, according to Kaufman. He said it was originally listed at nearly $2.4 million and was on the market for 100 days. Kaufman said it was a six-day close and the South Bay buyer paid for it in cash. “To the seller, that’s very appealing,” he said.

When the buyer pays all cash, the risk of the deal not happening is eliminated because there is proof of funds, he said. Kaufman said there has been a trend in the last few years of affluent buyers in the technology field buying primary or secondary residences in Santa Cruz County.

Mike O’Boy, sales manager at Sereno Group Aptos, said a majority of home buyers in the county are still coming from Silicon Valley, buying second homes or primary residences here because they are priced out of the Bay Area market. O’Boy said many in the industry were expecting to get back to normal inventory levels after last fall’s slowdown in sales, but that hasn’t happened yet this year. “We’re not seeing a lot of new, good quality inventory hit the market,” he said.

The unsold Inventory Index shows the relationship between supply of houses and demand for purchase. The normal inventory of houses is at about a five- to eight-month supply, O’Boy said. He said the market is now at a four-month supply, but has been less than a two-month supply for almost three years. However, the real estate market is facing a stronger spring than the market was in the fall because the economy is a little more stable, he said.

“Good properties that are well-priced are still getting multiple offers,” he said. The median home price, the midpoint of what sold, for single-family homes in Santa Cruz County, was $826,000 in January, according to Gary Gangnes of Real Options Realty, who tracks the numbers. Gangnes said the median price was $787,000 in January 2018.

By the numbers

How median home prices shifted:

Month Year:Price

January 2019: $826,000

December 2018: $926,000

November 2018: $911,250

October 2018: $907,500

September 2018: $920,000

August 2018: $920,000

July 2018: $885,000

June 2018: $927,500

May 2018: $900,000

April 2018: $905,000

March 2018: $935,100

February 2018: $800,000

The median price for condominiums and townhouses was $602,500 in January, according to Gangnes. It was $637,500 in January 2018.

January 2019 statistics

Single-family homes

Median price: $826,000 ($787,000 a year ago)

Listings: 305 (247 a year ago)

Sales volume: 74 (114 a year ago)

Distressed: No bank-owned or short sales

Unsold Inventory Index: 4.1 months (2.2 months a year ago)

Average price: $926,018 ($858,940 a year ago)

December’s average price was, $1,132,420, according to Gangnes.

Condos/townhouses

Median price: $602,500 ($637,500 a year ago)

Listings: 107 (58 a year ago)

Sales volume: 28 (33 a year ago)

Distressed: no bank-owned or short sales

Unsold Inventory Index: 3.8 months (1.8 a year ago)

Average price: $645,023 ($650,410 a year ago)

Source: Real Options Realty

Close to the median:

City of Santa Cruz

1222 Laurel St., $950,000

206 Glover St., $855,000

242 Jackson St., $775,000

134 Fernside St., $734,000

120 Grandview St., $714,000

County of Santa Cruz

411 Brook Lane, Boulder Creek, $830,000

415 Seventh Ave., Live Oak, $827,000

112 Siesta Court, Aptos, $825,000

4435 Bain Ave., Live Oak, $820,645

9754 Live Oak Ave., Ben Lomond, $820,000

Highest

25300 Quail Ridge Road, Los Gatos, $2,160,000

114 Central Ave., Capitola, $2,100,000

24846 Skyland Road, Los Gatos, $2,005,000

199 Shoreview Drive, Aptos, $1,697,500

828 Pelton Ave., Santa Cruz, $1,600,000

Lowest

7 Landis Ave., Amesti/Green Valley Road, Freedom, $410,000

15475 Big Basin Way, Boulder Creek, $407,000

617 Redwood Road, Felton, $397,500

467 Argos Circle, Watsonville, $302,000

160 Woodland Drive, Ben Lomond, $285,000

Source: Real Options Realty

This entry was posted in Market at a Glance, Real Estate Economic Trends.

Santa Cruz County home owners reduce prices to make deal

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Congratulations to Jondi Gumz on her retirement! Thank you for your years of service to the businesses in Santa Cruz.
Maggie

By Jondi Gumz, Santa Cruz Sentinel

DECEMBER 31, 2018, SANTA CRUZ, CA >>> Single-family home sales in Santa Cruz County dropped in November — from 183 a year ago to 134 — and the median price, the midpoint of what sold, was $911,250, according to Gary Gangnes of Real Options Realty, who tracks the numbers.

Sellers who expected they could tack 5 percent onto their asking price found fewer buyers. Deals were made after sellers lowered the price, sometimes more than once.

This 4,931-square-foot oceanfront designer home at 1443 San Andreas Road in La Selva Beach, a finalist in HGTV’s Ultimate House Hunt, sold in November for $9.4 million. (Contributed)

Asking price was $849,000 in July for a two-bedroom Southview Terrace condo on the Westside; after two price reductions, it sold in November for $745,000. Asking price in May was $4.899 million for a gated oceanfront estate at 1425 San Andreas Road, La Selva Beach; after three price cuts, it sold in November for $3.8 million. The priciest home sold in November, a 4,931-square-foot oceanfront home at 1443 San Andreas Road, was a finalist in the 2017 HGTV “Ultimate House Hunt” and fetched $9.4 million but the seller had listed it for $9.999 million.
This 4,931-square-foot oceanfront designer home at 1443 San Andreas Road in La Selva Beach, a finalist in HGTV’s Ultimate House Hunt, sold in November for $9.4 million. (Contributed)

“I think it’s buyer fatigue,” said Paul Bailey, co-owner of Bailey Properties with 43 years in real estate, citing negative political news, stock market gyrations, the Federal Reserve raising interest rates as reasons for buyers slowing down.

“We’re seeing homes sell if they’re priced correctly,” he said. “It’s not about the color of the carpet, it’s the location and the price.”

Buyers have more to choose from — a big change after years of shrinking listings. As of the first week of December, there were 425 single-family homes for sale, up from 387 a year, and 131 condos and town homes for sale, up from 75 a year ago, according to Gangnes.

A key indicator shows the market is less of a seller’s market. The unsold inventory index, how long it would take to sell available homes at the current sales rate, jumped to 3.2 months from 2.1 months a year ago for single-family homes and to 3.9 months from 2.1 months a year ago for condos. Bailey calculates there are 1.9 homes per buyer, up from .8 per buyer in March, when the median price set a new record of $935,100. He said that means there’s a balance, with neither buyers nor sellers having more leverage.

“We’re not used to this,” he said, recalling the last time the real estate market was this way was in the late 1990s.
This three-bedroom home in Scotts Valley, listed for sale for $999,999 on Oct. 26, has not sold yet as the market has slowed down.

Forrest Cambell of Monterey Bay Mortgage in Soquel said he’s seen sellers more willing to make repairs or give credits to buyers “whereas previously the buyers had less opportunity to negotiate.” The housing market has shifted from one side to the other, with sellers having the edge as prices advanced during the housing bubble, buyers having the edge as prices plummeted in the housing collapse, then sellers regaining the edge again due to limited inventory.

Bailey said the up-and-down of the stock market may help buyers if worried investors shift their funds out of stocks and into investments such as bonds, Treasury bills and mortgage-backed securities. “That liquifies our type of interest rates,” he said, adding that rates on a 30-year fixed mortgage rates, currently about 5 percent, could drop to 4.5 percent, an incentive for buyers.
Tax changes

Seb Frey of Realty World Virtuoso in Capitola contends 2018 was the peak year for local real estate, with the market stalling because buyers can’t afford to pay more for a home. He expects a drag on the 2019 market when taxpayers see the full impact of the reductions in state and local taxes and mortgage interest tax deductions. “For most would be buyers in the greater Bay Area, owning a home won’t pencil out favorably on a month-to-month basis,” he said.

Amba DesJardins, an agent with Coldwell Banker in Santa Cruz, noted that “record levels of sustained low employment have often been an indicator of a forthcoming recession.” DesJardins noted the abundance of jobs in Silicon Valley, and that if Google were to set up shop in Scotts Valley — nothing official on this — that would benefit the local real estate market.

Bailey sees UC Santa Cruz, Silicon Valley and millennials driving future demand. A three-bedroom home can house six students paying $800 each, that’s $4,800 a month. Millennials like the uniqueness of Santa Cruz, riding bikes on West Cliff Drive, walking to coffee shops, and home prices, while sky-high here, are higher in Silicon Valley. Bailey’s conclusion: “San Jose is coming, so hang on — the merry-go-round is not stopping.”

November 2018 statistics

 

Single-family homes

Median price: $911,250 ($865,000 a year ago; $800,750 in 2016)

Listings: 425 (387 a year ago; 389 in 2016)

Sales volume: 134 (183 a year ago; 144 in 2016)

Distressed: 2 bank-owned, 0 short sales

Unsold Inventory Index: 3.2 months (2.1 months a year ago)

Average price: $1,042,905 ($985,702 a year ago)

 

Condos

Median price: $637,000 ($590,000 a year ago; $479,000 in 2016)

Listings: 131 (75 a year ago; 93 in 2016)

Sales volume: 34 (35 a year ago; 47 in 2016)

Distressed: 0 bank-owned, 0 short sales

Unsold Inventory Index: 3.9 months (2.1 months a year ago)

Average price: $636,100 ($611,224 a year ago)

 

CLOSE TO THE MEDIAN

 

City of Santa Cruz

118 Wanda Court, $915,000

151 Carol Ave., $950,000

314 Pacheco Ave., $965,000

104 Flower St., $969,000

216 Fair Ave., $1M

 

Santa Cruz County

3868 Glen Haven Road, Soquel, $907,500

1731 Grey Seal Road, Live Oak, $920,000

332 Loyola Drive, Rio Del Mar, $925,000

27600 Havenhill Lane, Los Gatos, $928,000

455 Deer Run Road, Felton, $940,000

 

Lowest

418 Hillside Drive, Boulder Creek, $363,000

707 Primavera Road, Boulder Creek, $375,000

618 Ester Way, Watsonville, $375,000

229 Madrona Road, Boulder Creek, $415,000

4 7th St., Watsonville,$425,000

 

Highest

170 Corday Lane, Scotts Valley, $2.025M

401 Eagle Ridge, Corralitos, $2.3M

320 Bridlewood Court, Santa Cruz, $2.73M

1425 San Andreas Road, La Selva Beach, $3.8M

1443 San Andreas Road, La Selva Beach, $9.4M

Source: Real Options Realty

This entry was posted in Market at a Glance, Real Estate Economic Trends and tagged .

Senior real estate execs and small business owners to speak at Women’s Forum

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By Maggie Barr, Keller Williams Santa Cruz

OCTOBER 6, 2018, SANTA CRUZ, CA >>> 2018 is turning out be a significant year for the Women’s Movement. Because of the spontaneous “Me Too” movement, and the possibility that Roe V. Wade will be re-visited by a more conservative Supreme Court, the number of organized Women’s marches across the country has exploded.

Seven business and community influencers in Santa Cruz will speak about the need for more women in leadership roles and their personal challenges in the business world at the October 17th panel luncheon hosted by the Women’s Council of Realtors.

One women’s organization in the Central Coast is responding to the heightened awareness of women’s issues by hosting a luncheon event this month designed to inspire more women to find their voice, and begin to participate more actively in the political, business, and nonprofit arenas.  The Women’s Council of Realtors Santa Cruz has invited seven women of all ages from various industries to speak on a panel about their personal experiences with leadership challenges and triumphs in their careers.

All the women on the panel live and work in Santa Cruz County. Said Maggie Barr, President of the Women’s Council of Realtors, “In addition to needing women marching and standing up for women’s issues, we need more women leaders to make a real difference in both the public arena and the business world. With this event the Women’s Council is hoping to move the needle in that direction.”

Speaking on the panel will be:

Elaine Della-Santina, Team Leader, Keller Williams Santa Cruz

Morgan Lyng, General Manager, David Lyng

Stephanie Lutz, President, Santa Cruz Waves

Laurie Negro, Co-Owner, Betty Burgers

Lisa Martin, Owner, Elegant Geek

Suna Lock, Owner, Stripe Design

Melissa Gerardi, Owner, Oceanside Escrow Services

All these women have endured their own personal struggles getting to the leadership positions they hold today. They will share their stories of how being a woman in the business world made a difference in how they were treated, and how they rose above discrimination and setbacks.

Says Elaine Della-Santina, Team Leader at Keller Williams Santa Cruz, “In past positions in my career, I noticed a difference between how I was treated by senior managers compared to my male peers. I had to discovered creative ways to leverage my heightened awareness of gender differences to build better, more positive relationships with those senior managers.” Elaine currently manages over 100 Realtors in Santa Cruz for a brokerage with five offices across the Bay area. She’s learned that where you work is just as important as how your work, when it comes to being successful as a woman in the business world. “Fortunately, Keller Williams is a performance-based business, and has always supported women in leadership throughout the entire company.”

Some of the panelists are entrepreneurs and will share with the audience how owning a business brings with it its own unique challenges. The panel will be moderated by Jacquie Van Metre, Program Director for the Women’s Council of Realtors, and a Realtor at David Lyng in Santa Cruz. The Council is hosting this event for their members and the public.

Shared Jacquie, ” We wanted to host an event focused on the women leaders and entrepreneurs in our community. There are so many strong, passionate women who live here and who have chosen to start businesses here. The Women’s Council wanted to give the professionals of this community an opportunity to learn from, and to be inspired by these incredible women.”

The event is co-sponsored by Body Lab Med Spa in Santa Cruz and Ashley Scontriano, who’s currently running for Santa Cruz City Council. Said Ashley, “We need more women in public office in Santa Cruz County and beyond. I am hopeful this event will inspire more women to take on leadership positions in their careers and in the community. Our experiences and perspective are greatly needed for a balanced dialogue.”

The luncheon event will be held Wednesday October 17, 2018 at the Santa Cruz Hilton in Scotts Valley, CA. The event will run from 11:30am to 2:00pm, starting with a 30 minutes networking period. Tickets are $49 until October 10th. Then $59 online or at the door. Seating is limited. Advanced tickets are recommended.

If you go:

Local Women in Leadership Forum

Wednesday 10/17/18, 11:30am – 2:00pm

Santa Cruz Hilton

6001 La Madrona Dr., Scotts Valley, CA 95060

Tickets: http://bit.ly/wcroct18

Host: Santa Cruz Women’s Council of Realtors, www.wcr.org

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ABOUT WOMEN’S COUNCIL OF REALTORS SANTA CRUZ

The Women’s Council of Realtors founded in 1938 is a nationwide organization focused on advancing women as professionals and leaders in business, the real estate industry, and the communities they serve. Women’s Council has 253 Networks around the U.S. and is open to male members as well. The local Santa Cruz Network started in 1962 has over 70 members and strategic partners. Women’s Council offers quarterly industry events in Santa Cruz County covering a variety of real estate topics such as market trends, investing in real estate, rent control, and home renovation. To learn about upcoming events or learn more about Women’s Council visit www.wcr.org, or contact President Maggie Barr at maggiebarr@kw.com, or 831-252-0504.

ABOUT KELLER WILLIAMS SANTA CRUZ

Keller Williams Santa Cruz is a top-ranking brokerage with over 100 REALTORS serving the greater Santa Cruz County area. For more information about working with, or becoming an agent at Keller Williams Santa Cruz, contact Elaine Della-Santina at 831-457-5577, or visit www.kwsc.om.

ABOUT ASHLEY SCONTRIANO

Ashley Scontriano is running for Santa Cruz City Council in 2018. She is a graduate of Santa Clara University with a BA in Communications. She has had a career in advertising at Metro Santa Cruz, Good Times, and the Santa Cruz Sentinel, and helped launch the Santa Cruz Magazine. She has worked in fundraising at UCSC for both the Arts and the Humanity Division. She currently owns Bone-A-Fide Dog, a dog boarding and daycare service. Ashley is a proponent of City of Santa Cruz investment in public safety, affordable housing and small business growth. For more information about Ashley Scontriano and her campaign visit http://www.voteashley.org.

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Mount Hermon Road land deal struck for $8.5 million in Scotts Valley

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By Jondi Gumz, Santa Cruz Sentinel
http://www.santacruzsentinel.com/government-and-politics/20180924/mount-hermon-road-land-deal-struck-for-85-million

SEPTEMBER 24, 2018, SCOTTS VALLEY, CA >> The developers with a vision to build a $180 million town center on Mount Hermon Road have agreed to pay $8.5 million to buy property owned by the city of Santa Cruz, property that is crucial to bring the project to fruition. The buyers are Scotts Valley Town Green Land LLC, formed by Palisade Builders of Campbell with Chris Foley of Ground Matrix of San Francisco, working with Doug Ross of Palisade Builders in Campbell and Santa Cruz developer Owen Lawlor.

The deal goes to the Santa Cruz City Council for approval Tuesday. The property, part of the former Skypark airfield, consists of three parcels totaling 8.15 acres. The site fronts on Mount Hermon Road, one of the busiest streets in Santa Cruz County, near the intersection of Kings Village Road. It’s sandwiched between the U.S. Postal Service and where Scotts Valley developer Corbett Wright is making progress on building a Starbucks drive-through and a brewpub restaurant called “The Hangar.”

Newly rebranded as the Town Green, development of the former airfield has been discussed for more than 20 years. The property was appraised at $8.3 million last year, would be sold “as is,” meaning the developer would be responsible for any cleanup. Wright paid $520,000 to the city of Scotts Valley for his 1.5 acres after incurring expenses for soil remediation, building demolition and decommissioning a well. The city of Santa Cruz will not get a lump sum right away, as the Town Green developers requested a 15-month escrow in light of the time needed to gain approval for a project of this size. The developers would put down a $25,000 deposit immediately, another $50,000 in 90 days and $100,000 in 180 days. All deposits would be nonrefundable. The terms would allow the buyer to request three extensions of six months each, with the city of Santa Cruz able to grant a fourth six-month extension.

The 2008 Town Center plan covering 58 acres calls for 300 housing units, parking for 1,475 cars, a town green and 310,000 square feet of retail. Scotts Valley officials concede the last goal is overly ambitious given changing shopping habits. The city of Scotts Valley Redevelopment Agency had an option on the property, paying the city of Santa Cruz $5,000 to $20,000 for the privilege, until the state ended the redevelopment program.

In 2016, Doug Wiele of Foothill Partners in El Dorado Hills was enthusiastic about working with Wright and the town center project bringing in new retailers but Wiele backed away. Last year, three firms approached the city of Santa Cruz about buying the Skypark airfield property. In March, the Scotts Valley City Council chose Palisade Builders as the preferred developer for its vision of 288 housing units, 32,000 square feet of restaurant, market hall and retail space, a town green and parking garages.

This month, the council gave the developer 120 days to produce a site plan showing demolition and construction, types of uses, proposed square footage, ingress and egress for people on foot and in cars, potential tenants and financial projections.

This entry was posted in Real Estate Developer News and tagged , , .

What would Santa Cruz’s Measure M rent board look like, compared to others?

Posted on Updated on

By Jessica A. York, Santa Cruz Sentinel
http://www.santacruzsentinel.com/article/NE/20180831/NEWS/180839945

AUGUST 9, 2018, SANTA CRUZ, CA >> Should rent control become a reality in Santa Cruz this winter, a newly created independent authority will be tasked with working out the kinks and questions related to the Nov. 6 ballot Measure M.

Single-family homes, such as these seen in Santa Cruz’s Natural Bridges neighborhood, are affected by Measure M’s just cause eviction rules. Opponents of the measure fear high costs of litigation. (Dan Coyro – Santa Cruz Sentinel)

Members of the new rent board, initially appointed by the Santa Cruz City Council and reliant on city funding, would transition into elected officers with a budget funded by annual fees charged to landlords.

Measure M’s critics have called out the board’s operating expenses, in addition to litigation costs, as potential sources of escalating fiscal burden to the city.

As part of an ongoing series, the Sentinel is taking a closer look at the citizen initiative Measure M or “Santa Cruz Rent Control and Tenant Protection Act,” in order to fact check proponent and opponent assertions for some of the ballot measure’s most contentious aspects.

Lynn Renshaw, a leader of the Measure M opposition group Santa Cruz Together, asserted in a recent interview that the portion of Measure M that limits landlords from evicting tenants to a series of established “just causes” is unusual compared to other California cities with similar laws because it does not exempt property owners with a small number of rentals.

“If you take the number of single family homes times the median price, that’s $12 billion of dollars that’s being affected by this measure, because it affects every single family home in the city, so there will be real estate litigation,” Renshaw said. “I’m not talking about a lawsuit against Measure M, I’m talking about individual cases.”

City Attorney Tony Condotti, in an interview with the Sentinel, listed a series of areas that future litigation is “reasonably foreseeable.” He cited validity of the measure itself, board decisions related to landlord rent requests or the validity or amount of the rental housing fee, once established.

“The frequency, cost, and likely outcome of such potential litigation is unknown and will largely depend on future decisions made as the measure is being implemented,” Condotti said.

Condotti said as he interprets the ordinance, legal costs would be covered by fees paid by landlords.

Measure M proponents argue the rent board could help save landlords money otherwise spent in court.

“Many people mistakenly think that the mission of the Rent Board is only to protect renters, but it also offers protection for landlords, and provides a venue for landlords to address disputes with tenants without the need to file lengthy and costly court proceedings,” according to the Movement for Housing Justice’s website, santacruzrentcontrol.org. “In these cases, the Rent Board functions as a mediation agency and will seek redress for the landlord.”

‘WILL COST MILLIONS’

In its ballot argument rebuttal, Santa Cruz Together questions the idea that the rent board could be “self-sustaining,” because its revenue comes from landlord “taxes.”

“The Rent Board can also dip into Santa Cruz’s General Fund to cover millions in expenses — those are funds that should be for police, fire, roads, and parks,” the argument reads.

According to Measure M, Santa Cruz will be required to advance “all necessary funds to ensure the effective implementation of this Article,” until its funding structure is established. However, the city would be free to seek reimbursement of that seed money.

Once established, the board is expected to finance its “reasonable and necessary expenses” by charging landlords an annual rental housing fee that it sets. The caveat is that the board can turn to the city to request additional funding, if necessary.

The city of Richmond’s 2016 rent control ordinance served as a basic template for Measure M initiative authors, according to proponent group Movement for Housing Justice members.

While Richmond’s board is appointed rather than elected by voters, it also finances its budget by charging annual registration fees to landlords and is empowered to request funding “when and if necessary from any available source for its reasonable and necessary expenses.”

The city of Richmond also is directed to provide infrastructure support on an ongoing basis as it would with any other department, as with the Santa Cruz proposal. Also like Santa Cruz, Richmond City Council and the city manager do not have authority to oversee, supervise, or approve the budget, set in Richmond at $2.8 million for the 2018-2019 fiscal year.

Richmond Rental Program Deputy Director Paige Roosa said Friday that her program has not turned to the city of Richmond for additional financial assistance, to date, and in fact reimburses the city for shared use of administrative personnel from other departments. The rent program’s budget includes a $120,000 earmark for anticipated future litigation in the 2018-2019 fiscal year.

As for its landlords, Richmond has set its annual rental housing fee as a tier system, with governmentally stabilized unit owners paying $50, landlords of single family homes, condominiums and new construction paying $100 and the rest paying $207 a year. Owners of 20,000-some units are paying some level of the city’s rental housing fee, Roosa said.

Litigation filed by the California Apartment Association when Richmond and the city of Mountain View passed their new rent control ordinances was dismissed last year.

DECADES OF EXPERIENCE

Down the road from Richmond, Berkeley has had an elected rent board since 1982. In its 2018-2019 budget, the city’s rent board charges landlords a $250-per-unit annual fee to help fund the year’s nearly $5.2 million budget. Unlike in Santa Cruz and Richmond, Berkeley landlords are able to pass on nearly half of the fee to their tenants, above and beyond rent price restrictions. Certain low-income tenants are eligible for reimbursement for the landlord fee pass-through.

This year’s landlord fee represents about 1.15 percent of mean monthly rents charged in Berkeley, according to the board’s budget documents.

Berkeley has about 20,000 rent-controlled units, according to Berkeley Rent Stabilization Board Executive Director Jay Kelekian. Excluding loss of revenue from temporary exemptions, the board is expecting to bring in slightly less than $5 million in landlord fees in the coming year, with about $135,000 in supplemental revenue provided by late fees and Berkeley city reimbursements for services the agency provides beyond its prescribed duties. Portions of condominium conversion and short-term rental application fees, for example, go to the rent board, Kelekian said.

Kelekian said all rent control related costs are represented in the budget.

“We do not use any general fund revenue to administer or enforce the Rent Ordinance, we charge a separate fee,” Kelekian said.

ENFORCEMENT VIGOR

The cost to operate a rent control board, according to the 2012 report “Rent Stabilization And Eviction For Good Cause In The 21st Century,” issued by Berkeley’s rent board has much to do with how active the body is in proactively enforcing its founding laws.

Berkeley’s active enforcement style calls for a staff equivalent of more than 22 full-time workers, with a legal division of three and a half full-time positions. Revenue collected from landlords pays for both the rent board and its staff members’ salaries and benefits, plus other operating expenses.

According to the U.S. Census Bureau 2012-2016 American Community Survey estimates, renters take up 53 percent of the city of Santa Cruz’s occupied housing. Of Santa Cruz’s nearly 10,000 overall rental units — as of 2016 — the city of Santa Cruz estimates from 5,100 to 5,400 likely will qualify for rent control under Measure M.

About the Author

Jessica A. York covers Santa Cruz government, water issues and homeless for the Sentinel. She has been a working journalist, on both coasts, since 2004. Reach the author at jyork@santacruzsentinel.com or follow Jessica A. on Twitter: @reporterjess.

This entry was posted in Government & Regulations, RENT CONTROL.

Fewer than 1 in 5 residents can afford a home in Bay Area

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By Louis Hansen, Bay Area News Group
https://www.mercurynews.com/2018/08/09/fewer-than-1-in-5-residents-can-now-afford-a-home-in-bay-area

Just 12 percent of Santa Cruz County residents could muster enough money to buy a home, the lowest rate in California.

AUGUST 9, 2018, SAN JOSE, CA >> The Bay Area continues to lead the state in shattered home-ownership dreams. Record home prices and rising interest rates have pushed statewide home affordability rates to a 10-year-low. In the Bay Area, fewer than 1 in 5 residents can afford to buy into one of the nation’s most expensive real estate markets, according to a study released Wednesday by the California Association of Realtors.

Home affordability in California has reached a 10-year low. Growing demand and limited inventory have driven Bay Area home prices to record levels in 2018. (FILE: Courtesy of Pacific Union Real Estate)

“It’s not the worst I’ve ever seen, but it’s pretty darn close,” said Dave Walsh, vice president at Alain Pinel in San Jose. “It’s a challenge for any segment of society.” A swirl of forces has made the region too pricey for even double-income families: a shortage of new housing, booming job growth bringing more professionals to Silicon Valley, and interest rates ticking up from recent lows.

The run-up in prices has proven a spectacular investment for homeowners, even as many newcomers feel locked out. Median sale prices for Bay Area homes have increased every month over the previous year for a record six straight years. It’s led to an exodus from the area — only to be replaced by even more newcomers — and calls for housing reform in Sacramento and in city councils across the region. The CAR affordability index is based on a region’s median household income and the median home sale price. It also assumes a 20 percent down payment and a mortgage rate at the national average.

Nationally, more than half of households can afford an average home priced at $269,000. It takes a household income of $57,000 to pay the mortgage and have enough left over for food, health care and other essentials.

In California, the percentage of residents able to buy a single family home has hit its lowest point — 26 percent — since the first quarter of 2008, when the residential housing industry was beset by inflated prices and the subprime mortgage crisis. A typical state resident needs an annual income topping $125,000 to afford a median home priced at $596,000. In Los Angeles, about 3 in 10 households could afford to buy, while about 4 in 10 residents in the Inland Empire could make a purchase.

Bay Area residents find a much starker balance sheet. A household needs roughly $220,000 in income to afford a home at the median price of $1.04 million, according to CAR. After a down payment of more than $200,000, a typical new Bay Area homeowner would have a $5,500 monthly mortgage payment. Five of the nine Bay Area counties became less affordable in the second quarter: Alameda, Contra Costa, Santa Clara, Solano and Sonoma. Higher wages improved the home buying environment in San Francisco and Marin counties, while the index remained steady in Napa and San Mateo counties.

Just 12 percent of Santa Cruz County residents could muster enough money to buy a home, the lowest rate in California. About 14 percent of residents in San Francisco and San Mateo counties could afford homes, while 16 percent of residents in Alameda and Santa Clara counties could.

Matt Rubenstein, a Danville-based agent, said the market remains tight, but his office has stayed busy. Many of his recent sales have come from repeat buyers using their home equity to buy a larger home — either by moving away from an expensive area or trading up from a condominium. “Our area has gotten really expensive,” said Rubenstein, who sells in Contra Costa County. But, compared to the Peninsula, he said, “there’s still some really good values here.”

A typical buyer in Santa Clara County needs to make about $300,000 to qualify for a mortgage. Walsh said that’s a narrow market: “Two college-educated professionals holding two very successful jobs.” Unless the region builds more homes, Walsh said, a low affordability index may be common in the future. Blue collar workers, young professionals with student debt and non-tech professionals will be squeezed out. “We’re at crisis levels now,” Walsh said. “We must do something. We no longer have an option of just thinking about it.”

Louis Hansen Louis Hansen covers Tesla and renewable energy for the Bay Area News Group and is based at The Mercury News. He’s won national awards for his investigations and feature stories. Prior to joining the organization, he was an enterprise reporter at The Virginian-Pilot, where he covered state government, the military and criminal justice. Follow Louis Hansen @HansenLouis.

This entry was posted in Real Estate Economic Trends and tagged , , .