We're pleased to share this special edition of “The Scoop – Power Hour” where we discussed regional housing and planning issues, the concerns about sea-level rise, and timely risk management topics. You can view the recording of the event below.
Our next edition of "Scoop - Power Hour" is coming up Wednesday, February 10, at 2:00 p.m. Tune in for an exclusive update focused on San Diego's housing market and hot topics. Register here.
Highlights from the Yesterday's Briefing Included:
REGIONAL HOUSING AND DEMOGRAPHIC UPDATE & 2021 REGIONAL PLAN - Ray Major; Chief Economist & Chief Data and Analytics Officer at San Diego Association of Governments (SANDAG)
Ray Major gave an update on what's happening in the San Diego region, especially as it relates to demographics, jobs, housing, as well as an introduction to the San Diego regional transportation plan and how it may impact real estate in the in the future here.
The San Diego region has 3.4 million people and is the fifth most populous county in the nation. That number is expected to grow to about 3.7 million by the year 2050.
San Diego also has a younger population than most of the other regions. Our regional median age is lower than the U.S. as a whole, which is important, Major said, because right now biotech and high tech really drive a large part of our economy, and the workforce that businesses draw from come from this demographic.
Major also provided an overview of the housing market, noting that even though housing affordability is helped by low interest rates, there's a large percentage of the population who cannot afford to move into homes. Part of our problem here in San Diego is that there is a lack of housing, it is estimated that there's about 100,000 units of backlog that need to be built in order to accommodate pent-up demand, he said.
This March, SANDAG's board of directors will review the new regional plan that, if approved, will be driving what our region looks like for the next 40 years. The plan is based on five strategies which include connecting all of the different major infrastructure freeways in San Diego; having a network of bike paths and active transportation paths; fast, high-capacity, high-frequency transit services called "Transit Leap"; shared mobility services called "Flexible Fleets"; and places of connectivity where different travel options come together called "Mobility Hubs."
SEA-LEVEL RISE AND COASTAL ADAPTATION POLICIES - Don Schmitz, Consultant with Smart Coast California at Schmitz & Associates
Don Schmitz presented on sea-level rise and what is being done to protect the coastal communities of San Diego. Currently, vulnerability assessments with grants from the Coastal Commission are taking place or have been completed. What these assessments are doing is taking projections for sea-level rise and mapping them out for the coastline all up and down the county.
The Coastal Commission is pursuing regulations which will do away with the shoreline protection devices, wherever possible. The Commission prefers what is called "managed retreat," which is basically that over time, when structures are rebuilt, they are built in such a way that anticipates sea-level rise and will not be at risk for wave attack.
Smart Coast California has been submitting letters to local jurisdictions into the Coastal Commission itself because "managed retreat" certainly has its place, but there are problems with it that need to be addressed. Going through the legislative process here, managed retreat could raise a specter of there being real takings of private property for public use.
If the government takes the property, they have to buy it. In fact, even the Coastal Act itself specifies that the Coastal Commission shall not exercise its power to grant or deny a permit in a manner which will take damaged private property for public use without payment of just compensation. It's important to note that if there are going to be regulations adopted by the counties and cities, that they will be on the hook to buy out these properties should they not allow them to protect themselves with shoreline protection devices or some other alternatives such as beach nourishment, offshore reefs, things of that nature.
RISK MANAGEMENT UPDATES - Dean Stalter, Berkshire Hathaway HomeServices; Dan Hill, Keller Williams La Mesa; and Robert Sunderland, Sunderland | McCutchan, LLP
Dean Stalter provided an update on the Homestead Exemption (AB1885) which changes the Homestead Exemption amounts that were previously allowed beginning January 1. It can only be taken on a principal residence and protects homeowners against various liens.
Dan Hill provided an update on Common Interest Development (AB3182) which states that developers must allow up to 25% of their owners to rent or lease units. This does not grandfather in new owners if the property is sold, so it is suggested that the new owners check in with their HOA on their specific rules.
In addition, Hill provided information on the Home Hardening Disclosure and Point of Sale compliance form (AB38), which is required if the property is in a high or very high fire hazard territory. You can verify if this is the case by referring to the San Diego Fire Map to reference the property's location.
Robert McCutchan discussed changes coming to property management (AB42). He indicated there are three basic reasons for eviction when working in property management: not paying rent, illegal use of the property, or no fault/just cause.
There have been some major changes to eviction due to COVID-19. If a tenant is unable to pay rent due to the pandemic and provides you with the proper paperwork, there is no way to evict them at this time. Also, the 3-day "pay or quit" notice is now a 15-day notice.
The new laws are in place until January 31, but will most likely be extended for another three months. There are landlord relief funds that should be coming available soon to assist with landlords who have a hardship due to tenants being unable to pay their current lease, McCutchan added.