Coronavirus Real Estate Update

Presidential proclamation regarding evictions: President Trump has declared that the federal government shall not evict anyone until after April 31. This pertains to government transactions such as FNMA, FreddieMac foreclosures and HUD housing. HUD must suspend foreclosures and evictions. Ordinary, private evictions are not affected. #coronavirus #realestate #california | Blog Video

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Coronavirus Addendum

Coronavirus Force Majeure cancellation rights have been issued in the state of California. This gives buyers and sellers additional rights to delay and cancel certain real estate transactions. All parties to real estate transactions should immediately begin receiving from their Realtor(R) the C.A.R. CVA form Coronavirus Addendum / Amendment, which informs buyers and sellers of their expanded rights to cancel and delay closing real estate transactions.

Reader Questions

Q: What are los angeles county rent dues with the “corona virus”? A: Not exactly sure what this question means, but some renters may be given more time to pay their rent. Some evictions may be delayed. Home buyers and sellers now additional rights to delay or cancel transactions.

Governor Gavin Newsom has removed some statewide restrictions on municipalities, making eviction moratoriums easier for cities and counties.

Reminder to send out Exemption Notices

What Property Owners Need to Know About Rent Control Exemptions:

Today’s message is to all of the rental property owners, landlords in the state of California: If you own an investment property and you’re exempt under the new rent control law, you’re still legally required to give your tenants an exemption notice or else your property will be subject to rent control. To learn more about rent control exemptions and how they could impact property owners, watch our latest video.

Regarding rent control, there are several exemptions that allow larger rent increases and no-fault evictions, including: properties built or converted less than 15 years ago; houses, and condo units owned by a non-corporate individual. Most Downtown Los Angeles lofts and condos fall under these exemptions. Landlords with exempt properties must send a Notice of Exemption to the tenants to help ensure that the landlord retains these exemptions. If you own an investment property in the state of California and you’re exempt under the new California rent control law, you’re required under the law to still give your tenants an exemption notice or else your property will be still subject to the law. There are a number of properties out there that are exempt from the law. For example, single family homes, condos, townhomes, where it’s tenant unoccupied, are exempt under the new rent control law. Additionally, folks that own duplexes where a one unit is owner-occupied and the other units tenant occupied: those properties are exempt from the law as long as it remains owner-occupied from one of those units. However, regardless, in order for these properties that are supposed to be exempt under the law, in order for them to be exempt under the law, the owner of the property must give an exemption notice to the tenant, letting the tenant know that their property is exempt from rent control law. Otherwise you could be subject to rent control. And you know, it entails both limitations on how much you can raise the rent, but also limitations on how you could terminate that lease. Once a tenant has lived in the property for over 12 months, an owner can no longer terminate that lease if it’s under the rent control law without having just cause. But, this is just a quick reminder folks, that if you do own property that is exempt in the law, please be sure to send out those exemption notices, or else you could find that you are no longer exempt. Please tell any of your friends who own properties: single family homes, condos, townhomes that are tenant occupied, and duplexes where the owner occupies one unit and is renting out the other units. We’re finding that a lot of folks who own these properties are not aware of this law. They just assume it doesn’t apply to them and they’re not aware that they need to send out exemption notices to their tenants, in order to really be exempt from the law. There’s a lot more to the rent control law than we’re discussing in this post. Feel free to reach out to the L.A. Loft Blog, and we’d be happy to send you a copy of the law. It’s more information on the new rent control law.

Renters, landlords, buyers, sellers and investors should consult with an attorney, and should perform their own research and due diligence before taking any action or making any decisions related to these laws and policy changes. | MORE

Q: What is avant 1360 south figueroa st? A: Avant is a relatively new apartment building in the South Park neighborhood of Downtown Los Angeles | DETAILS

Get a free list of buildings with rent control exemptions. Fill out my online form:

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UPDATE 03/19/2020: In light of the COVID-19 crisis and national emergency, the Los Angeles Housing + Community Investment Department (HCIDLA) has announced that it is unable to accept new Low Income Purchase Assistance (LIPA) Program Loan Reservation Requests at this time. MORE

Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE 01889449 We are not associated with the homeowner’s association or developer. For more information, contact 213-880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

Notice of Exemption – Interim Version (pdf)

Coronavirus Addendum / Amendment

Coronavirus Infects Los Angeles Housing Market – How are Public Health and Real Estate Connected?

Real Estate News

Los Angeles County Home sales and prices tumbled in January as the market reacts to the economic uncertainties of the coronavirus.

Home sales and prices dropped last month in Los Angeles County, and authorities think the worldwide onset of the novel coronavirus may have rattled the market, according to Patch.com. #coronavirus #losangeles

The county’s median home sales price dipped nearly 4 percent from December, the California Association of Realtors reported Wednesday. Statewide, the picture was even worse. California’s median single family home price dropped 6.5%. in a month. #realestate

CAR Chief Economist Leslie Appleton-Young said that the real estate market was rattled at the beginning of the year, like other markets, by the worldwide onset of the novel coronavirus originating in China.

“With interest rates on a declining trend again due to concerns about the impact of the coronavirus, motivated buyers will have an opportunity to stretch their purchasing power in the housing market,” she said. “The economic outlook, however, is less clear than a month ago, before the outbreak of the disease, and we should expect market uncertainties to continue to linger on for the short term.”

In the longer term, the biggest impact to the U.S. may come from the disruption to the world economy as a whole, and global supply chains in particular. South Korean automaker Hyundai has suspended production due to a shortage of parts, while Saudi Arabia has pushed for oil production cuts in light of reduced demand from China.

The California real estate market has been increasingly connected to events in China, as recently reported by the L.A. Loft Blog in articles about financing of OceanWide Plaza and Metropolis new condo projects.

The Real Deal reports on the topic: “The size of China’s economy makes it inevitable that a short-term slowdown will drag on global economic growth, with Asian countries and major trading partners likely to be most affected,” CBRE Greater China analysts stated in a report this week, noting that while improved transport infrastructure in China could contribute to the spread of the virus, advances in surveillance and big data should help efforts to control the outbreak. | BLOG VIDEO

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But if the virus cannot be contained, then all bets are off. China, California and the entire U.S. will suffer.

“A coronavirus pandemic would be even more of a ‘black swan than the global financial crisis and Great Recession of 2008-2009,” Moody’s analysts warned in a research report last week, noting that the industrial metals price index has fallen by 7.1 percent since the risks of coronavirus first became apparent.

“It won’t just affect our market — the implications are huge, and we need to brace for the impact,” said Daniel Chang, head of Asia for the Field team at Sotheby’s. Chang recalled how business slowed to a crawl during the SARS outbreak two decades ago, when he worked as a private banker for HSBC.

Panic could end up being the more serious killer. In fact, some statistic infer that Californians are 9,000 times more likely to die of the regular flu than to perish from the recent covid-19 novel coronavirus outbreak.

While the coronavirus may have a bit of a scary effect on LA real estate, the effect is more of a minor catalyst to falling prices. As the LA Loft Blog has reported, the weakness in China, along with local economic pressures toward falling home prices in California had already begun well before the recent outbreak.

Related articles:

https://magazine.realtor/daily-news/2020/02/06/housing-market-is-feeling-effects-of-coronavirus-outbreak

https://therealdeal.com/2020/02/05/inside-the-coronavirus-epidemics-impact-on-us-real-estate/

The smartest people in Los Angeles always have the best questions. Here’s what L.A. Loft Blog readers are thinking and asking:

Q: Where can I find Loft in LA for Short Term? A: There aren’t very many lofts available for short term lease, but there are a few. DETAILS

Q: What is the status of Oceanwide plaza los angeles? A: OceanWide Plaza construction is about 50% complete, but it has been on hold for many months due to a lack of funding from mainland China developers. MORE

Q: Where can I find Mills Act properties in dtla? A: Historic lofts and condos with property tax benefits can be found at www.MillsActLA.com

6 Mistakes to Avoid in DTLA – Get a FREE Special Report: Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | PopularLuxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE 01889449 We are not associated with the homeowner’s association or developer. For more information, contact 213-880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.