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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (8917)	2/16/2003 11:28:59 AM
From: portage	Read Replies (1) \| Respond to of 306849

More on prop. 13 today. The other aspect sometimes neglected re: prop. 13 is the fiscalization of land use, which often affects land use decisions as much or more than growth control. Not to mention the commercial properties that locked in low rates years ago, and since they don't often change ownership, have kept low rates with the 2% annual cap all these years. sfgate.com excerpt: Carol Whiteside, director of the Great Valley Center, said the Central Valley suffers from the same housing problem afflicting most of the state: Demand far outstrips supply. Whiteside places some blame on Proposition 13. Because the legislation, approved in 1978, limited the annual increase in the assessed value of real estate - and hence property taxes - to 2 percent per year (unless the property is sold), municipalities are starved for cash. As a result, Whiteside said,while carpenters and plumbers are hard at work on scores of residential subdivisions, Central Valley cities are particularly keen to give the green light to commercial projects, which generate lucrative sales revenue but may limit the number of new homes. "Right now we're probably building 150,000 fewer homes (statewide) each year than we need because government agencies aren't approving the lots," said Sid Dunmore, chief executive of Roseville's Dunmore Homes. "That's a big reason why prices are going where they're going."