California’s Proposition 19 went into effect on April 1, 2021. It’s known as the “The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act.”
The goal of Proposition 19 is to help millions of older homeowners who want to downsize without huge increases in property tax, homeowners with severe disabilities, and victims of wildfire or natural disaster.
The real goal is to open more homeownership opportunities for renters, young families, and first-time homebuyers.
How? California lawmakers envision that older homeowners will move to senior housing, retirement communities, or condos, or downsize to smaller homes.
Prop 19 allows victims of wildfire or natural disaster to transfer the property tax base of their damaged house to a replacement home anywhere in California.
“Where will I move if I sell?” is perhaps the most common question long-time California home owners ask these days.
Of course, many people are leaving California altogether whether for cheaper real estate, different weather, to be near family, to pursue a dream of retiring in another country like Mexico, for lower taxes, or, like Elon Musk, for different politics.
Along came SB-9!
Does it matter if you can keep a low property tax basis from the property you are selling if housing in California is so expensive?
There are ways!
If you are thinking of selling a home or lost your house in a wildfire, let’s strategize.
There are plenty ways to stay in the area that you love and downsize by taking advantage of California SB-9 — which came into effect in 2022 — and allows for building new housing on a single-family lot and splitting it into a new parcel.
Along with SB9 and new ADU laws, there is so much opportunity to sell a larger house or buy a new house after a disaster at a lower price than a stand-alone house.
As a Senior Residential Specialist (SRES®) and Realtor®, helping clients plan a new chapter is my passion along with helping you tackle the dreaded downsizing. Please get in touch!
Learn more about Prop 19
- Even if you’re not in San Francisco, this page has great information about Prop 19 and tax implications.
- Read the full Proposition 19 law.