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He also attended UC Berkeley's Graduate School of Journalism and had the opportunity to write for the hyperlocal news sites Richmond Confidential and Oakland North.","avatar":"https://secure.gravatar.com/avatar/aedfae46322917626352337ecd4f0981?s=600&d=blank&r=g","twitter":null,"facebook":null,"instagram":null,"linkedin":null,"sites":[{"site":"arts","roles":["editor"]},{"site":"news","roles":["editor"]},{"site":"science","roles":["editor"]},{"site":"perspectives","roles":["editor"]}],"headData":{"title":"Spencer Whitney | KQED","description":"KQED Digital Editor","ogImgSrc":"https://secure.gravatar.com/avatar/aedfae46322917626352337ecd4f0981?s=600&d=blank&r=g","twImgSrc":"https://secure.gravatar.com/avatar/aedfae46322917626352337ecd4f0981?s=600&d=blank&r=g"},"isLoading":false,"link":"/author/swhitney"},"sjohnson":{"type":"authors","id":"11840","meta":{"index":"authors_1591205172","id":"11840","found":true},"name":"Sydney Johnson","firstName":"Sydney","lastName":"Johnson","slug":"sjohnson","email":"sjohnson@kqed.org","display_author_email":false,"staff_mastheads":["news"],"title":"KQED Reporter","bio":"Sydney Johnson is a general assignment reporter at KQED. She previously reported on public health and city government at the San Francisco Examiner, and before that, she covered statewide education policy for EdSource. Her reporting has won multiple local, state and national awards. Sydney is a graduate of the University of California, Berkeley and lives in San Francisco.","avatar":"https://secure.gravatar.com/avatar/97855f2719b72ad6190b7c535fe642c8?s=600&d=blank&r=g","twitter":"sydneyfjohnson","facebook":null,"instagram":null,"linkedin":null,"sites":[{"site":"news","roles":["editor"]}],"headData":{"title":"Sydney Johnson | KQED","description":"KQED Reporter","ogImgSrc":"https://secure.gravatar.com/avatar/97855f2719b72ad6190b7c535fe642c8?s=600&d=blank&r=g","twImgSrc":"https://secure.gravatar.com/avatar/97855f2719b72ad6190b7c535fe642c8?s=600&d=blank&r=g"},"isLoading":false,"link":"/author/sjohnson"}},"breakingNewsReducer":{},"campaignFinanceReducer":{},"firebase":{"requesting":{},"requested":{},"timestamps":{},"data":{},"ordered":{},"auth":{"isLoaded":false,"isEmpty":true},"authError":null,"profile":{"isLoaded":false,"isEmpty":true},"listeners":{"byId":{},"allIds":[]},"isInitializing":false,"errors":[]},"navBarReducer":{"navBarId":"news","fullView":true,"showPlayer":false},"navMenuReducer":{"menus":[{"key":"menu1","items":[{"name":"News","link":"/","type":"title"},{"name":"Politics","link":"/politics"},{"name":"Science","link":"/science"},{"name":"Education","link":"/educationnews"},{"name":"Housing","link":"/housing"},{"name":"Immigration","link":"/immigration"},{"name":"Criminal Justice","link":"/criminaljustice"},{"name":"Silicon Valley","link":"/siliconvalley"},{"name":"Forum","link":"/forum"},{"name":"The California Report","link":"/californiareport"}]},{"key":"menu2","items":[{"name":"Arts & Culture","link":"/arts","type":"title"},{"name":"Critics’ Picks","link":"/thedolist"},{"name":"Cultural Commentary","link":"/artscommentary"},{"name":"Food & Drink","link":"/food"},{"name":"Bay Area Hip-Hop","link":"/bayareahiphop"},{"name":"Rebel Girls","link":"/rebelgirls"},{"name":"Arts Video","link":"/artsvideos"}]},{"key":"menu3","items":[{"name":"Podcasts","link":"/podcasts","type":"title"},{"name":"Bay Curious","link":"/podcasts/baycurious"},{"name":"Rightnowish","link":"/podcasts/rightnowish"},{"name":"The Bay","link":"/podcasts/thebay"},{"name":"On Our Watch","link":"/podcasts/onourwatch"},{"name":"Mindshift","link":"/podcasts/mindshift"},{"name":"Consider This","link":"/podcasts/considerthis"},{"name":"Political Breakdown","link":"/podcasts/politicalbreakdown"}]},{"key":"menu4","items":[{"name":"Live Radio","link":"/radio","type":"title"},{"name":"TV","link":"/tv","type":"title"},{"name":"Events","link":"/events","type":"title"},{"name":"For Educators","link":"/education","type":"title"},{"name":"Support KQED","link":"/support","type":"title"},{"name":"About","link":"/about","type":"title"},{"name":"Help Center","link":"https://kqed-helpcenter.kqed.org/s","type":"title"}]}]},"pagesReducer":{},"postsReducer":{"stream_live":{"type":"live","id":"stream_live","audioUrl":"https://streams.kqed.org/kqedradio","title":"Live Stream","excerpt":"Live Stream information currently unavailable.","link":"/radio","featImg":"","label":{"name":"KQED Live","link":"/"}},"stream_kqedNewscast":{"type":"posts","id":"stream_kqedNewscast","audioUrl":"https://www.kqed.org/.stream/anon/radio/RDnews/newscast.mp3?_=1","title":"KQED Newscast","featImg":"","label":{"name":"88.5 FM","link":"/"}},"news_11980592":{"type":"posts","id":"news_11980592","meta":{"index":"posts_1591205157","site":"news","id":"11980592","score":null,"sort":[1711285220000]},"guestAuthors":[],"slug":"recently-sold-a-home-you-might-get-part-of-your-realtor-fee-back","title":"Recently Sold a Home? You Might Get Part of Your Realtor Fee Back","publishDate":1711285220,"format":"standard","headTitle":"Recently Sold a Home? You Might Get Part of Your Realtor Fee Back | KQED","labelTerm":{"term":253,"site":"news"},"content":"\u003cp>Big changes are coming to the way people buy and sell houses in the United States. The National Association of Realtors settled a lawsuit last week that could up-end the way real estate agents are paid, doing away with the traditional agent’s commission of 5–6%. That’s prompting a reckoning for buyers, sellers and real estate agents. Here are six things to know.\u003c/p>\n\u003ch2>What if you already sold a house?\u003c/h2>\n\u003cp>As part of the settlement, the National Association of Realtors agreed to pay $418 million over the next four years. That’s in addition to $210 million that various brokerage firms had already agreed to pay. Lawyers will get a chunk of that money, but the rest will go to people who sold their homes in recent years and paid what critics argue were inflated real estate commissions. Eligibility depends on where you live, but in some parts of the country, the settlement covers people who sold homes as much as a decade ago.\u003c/p>\n\u003cp>“We don’t know the exact number, but we estimate it to be in the neighborhood of 40 or 50 million” people, says Benjamin Brown, co-chair of the anti-trust practice at Cohen Milstein, one of the law firms involved in the class-action case.\u003c/p>\n\u003cp>To find out if they’re entitled to compensation, sellers can check the lawyers’ website: \u003ca href=\"https://www.realestatecommissionlitigation.com/\">www.realestatecommissionlitigation.com\u003c/a>.\u003c/p>\n\u003ch2>How will this change real estate commissions?\u003c/h2>\n\u003cp>For decades, the norm in this country has been for the person selling a home to pay both her own agent and the buyer’s agent. What’s more, the buyer’s share of that commission had to be spelled out in order to advertise the home on the big regional listing sites. Realtors insist they never fixed those commissions, but as a practical matter, the public notice worked to set a standard — often in the neighborhood of 5 or 6%, split between the seller’s agent and the buyer’s agent.\u003c/p>\n\u003cp>[aside postID=news_11980019 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/GettyImages-1468009097-1020x680.jpg']For a home priced at $400,000 — which is close to the national average — that works out to $20,000 to $24,000 in commissions — much higher than people in other countries typically pay. In Germany, commissions average 4.5%. In the U.K., they’re under 2%.\u003c/p>\n\u003cp>Starting in July, sellers will no longer have to spell out a commission for the buyer’s agent. Advocates say that should lead to more negotiation, more competition and ultimately lower costs.\u003c/p>\n\u003ch2>What increased negotiations mean for buyers and sellers?\u003c/h2>\n\u003cp>There’s going to be more opportunity to shop around, and likely a wider array of services, from deluxe agents who charge a premium price to discount agents with more limited services — similar to what exists in other markets like stock brokers and travel agents.\u003c/p>\n\u003cp>Sellers may be able to negotiate a flat fee to market their house, not connected to the selling price. Buyers may be able to purchase a la carte services — paying less if they do their own house-hunting on the Internet and more if they want to be chauffeured around to open houses.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Many sellers may decide not to pay the buyer’s agent, leaving buyers to shoulder that cost on their own, or go without an agent altogether.\u003c/p>\n\u003cp>Overall expenses are expected to be significantly lower, however. Economists at the \u003ca href=\"https://www.richmondfed.org/publications/research/economic_brief/2024/eb_24-08\">Federal Reserve Bank of Richmond\u003c/a> estimate the changes could save homebuyers $30 billion a year, with most of those savings coming out of the pockets of real estate agents.\u003c/p>\n\u003ch2>What does this mean for agents?\u003c/h2>\n\u003cp>Agents are still sorting out what this might mean for their business. When fees are more negotiable, agents will have to make the case for what they’re worth. But the best agents feel like they do that already.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Kevin Wilson, president, Greater Nashville Realtors\"]‘Do I think that Realtors have to learn to do business in a different way? Absolutely. But I also think this is a wrinkle in the landscape. Not a landmine.’[/pullquote]“Do I think that Realtors have to learn to do business in a different way? Absolutely,” says Kevin Wilson, president of the Greater Nashville Realtors. “But I also think this is a wrinkle in the landscape. Not a landmine.”\u003c/p>\n\u003cp>A drop in commissions might drive some agents into other lines of work, but that’s not necessarily a bad thing. The U.S. has 2.5 to 3 million real estate agents — which is far more than any other country, relative to the size of its housing market. For example, the U.S. has about six times more home sales each year than the U.K. does, but 26 times more agents.\u003c/p>\n\u003cp>“Do we see agents that work with buyers start to phase out of the business because they’re just not getting as many clients?” asks Jovani Ortiz, an agent on Long Island. “These are sort of the unknowns that most agents are looking at right now.”\u003c/p>\n\u003cp>While the commission pie is likely to shrink, it may be cut into fewer slices, so the remaining agents might end up making the same amount of money.\u003c/p>\n\u003ch2>With home prices and mortgage rates already high, how will homebuyers pay for their own agents?\u003c/h2>\n\u003cp>While sellers have traditionally paid buyers’ agents in the U.S. (and built that expense into the sales price of their home), many sellers may opt not to pay buyers’ agents in the future. In that case, buyers will have to pay their own agent out of pocket, on top of a down payment and other closing costs. Finding thousands of dollars to pay an agent could be a challenge, especially for first-time buyers, who typically have limited funds and also the greatest need for an agent’s guidance. First-time buyers accounted for just 26% of existing home sales in February — tying a record low.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Vanessa Perry, professor, George Washington University School of Business\"]‘Many first time buyers are already at the absolute max of what they’re able to borrow. They’re not going to be able to come up with any additional cash to pay their own agent’[/pullquote]“Many first time buyers are already at the absolute max of what they’re able to borrow,” says Vanessa Perry, a professor at George Washington University School of Business and a fellow at the Urban Institute’s Housing Policy Finance Center. “They’re not going to be able to come up with any additional cash to pay their own agent.”\u003c/p>\n\u003cdiv>\n\u003cp>Home sellers could still agree through negotiation to pay the buyer’s agent. But in a hot housing market, sellers may have little incentive to do so. Eventually, buyers may be able to fold the cost of their agent’s commission into their mortgage, stretching the payments out over the life of the loan. But that will require a change in mortgage underwriting rules. Over time, lower real estate commissions should lead to somewhat lower housing prices.\u003c/p>\n\u003ch2>What should people who are thinking of buying or selling in the next six months do?\u003c/h2>\n\u003cp>The settlement’s changes in commission rules take effect in July, just as many people will be shopping for homes ahead of a new school year. But it’s not clear how quickly the landscape will change. Buyers and sellers may want to talk with their agent about the costs and benefits of moving before the deadline or waiting until the new rules are in place. Remember, commissions account for $20,000 to $24,000 on a typical home. Still, that’s just one factor to consider when deciding when to buy or sell — along with interest rates, the supply of homes on the market and life circumstances like a new job or family member.\u003c/p>\n\u003c/div>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":null,"status":"publish","parent":0,"modified":1711158700,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":22,"wordCount":1385},"headData":{"title":"Recently Sold a Home? You Might Get Part of Your Realtor Fee Back | KQED","description":"Big changes are coming to the way people buy and sell houses in the United States. The National Association of Realtors settled a lawsuit last week that could up-end the way real estate agents are paid, doing away with the traditional agent’s commission of 5–6%. That’s prompting a reckoning for buyers, sellers and real estate","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"sticky":false,"nprByline":"\u003ca href=\"https://www.npr.org/people/2788801/scott-horsley\">Scott Horsley\u003c/a>","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11980592/recently-sold-a-home-you-might-get-part-of-your-realtor-fee-back","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Big changes are coming to the way people buy and sell houses in the United States. The National Association of Realtors settled a lawsuit last week that could up-end the way real estate agents are paid, doing away with the traditional agent’s commission of 5–6%. That’s prompting a reckoning for buyers, sellers and real estate agents. Here are six things to know.\u003c/p>\n\u003ch2>What if you already sold a house?\u003c/h2>\n\u003cp>As part of the settlement, the National Association of Realtors agreed to pay $418 million over the next four years. That’s in addition to $210 million that various brokerage firms had already agreed to pay. Lawyers will get a chunk of that money, but the rest will go to people who sold their homes in recent years and paid what critics argue were inflated real estate commissions. Eligibility depends on where you live, but in some parts of the country, the settlement covers people who sold homes as much as a decade ago.\u003c/p>\n\u003cp>“We don’t know the exact number, but we estimate it to be in the neighborhood of 40 or 50 million” people, says Benjamin Brown, co-chair of the anti-trust practice at Cohen Milstein, one of the law firms involved in the class-action case.\u003c/p>\n\u003cp>To find out if they’re entitled to compensation, sellers can check the lawyers’ website: \u003ca href=\"https://www.realestatecommissionlitigation.com/\">www.realestatecommissionlitigation.com\u003c/a>.\u003c/p>\n\u003ch2>How will this change real estate commissions?\u003c/h2>\n\u003cp>For decades, the norm in this country has been for the person selling a home to pay both her own agent and the buyer’s agent. What’s more, the buyer’s share of that commission had to be spelled out in order to advertise the home on the big regional listing sites. Realtors insist they never fixed those commissions, but as a practical matter, the public notice worked to set a standard — often in the neighborhood of 5 or 6%, split between the seller’s agent and the buyer’s agent.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11980019","hero":"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/GettyImages-1468009097-1020x680.jpg","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>For a home priced at $400,000 — which is close to the national average — that works out to $20,000 to $24,000 in commissions — much higher than people in other countries typically pay. In Germany, commissions average 4.5%. In the U.K., they’re under 2%.\u003c/p>\n\u003cp>Starting in July, sellers will no longer have to spell out a commission for the buyer’s agent. Advocates say that should lead to more negotiation, more competition and ultimately lower costs.\u003c/p>\n\u003ch2>What increased negotiations mean for buyers and sellers?\u003c/h2>\n\u003cp>There’s going to be more opportunity to shop around, and likely a wider array of services, from deluxe agents who charge a premium price to discount agents with more limited services — similar to what exists in other markets like stock brokers and travel agents.\u003c/p>\n\u003cp>Sellers may be able to negotiate a flat fee to market their house, not connected to the selling price. Buyers may be able to purchase a la carte services — paying less if they do their own house-hunting on the Internet and more if they want to be chauffeured around to open houses.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Many sellers may decide not to pay the buyer’s agent, leaving buyers to shoulder that cost on their own, or go without an agent altogether.\u003c/p>\n\u003cp>Overall expenses are expected to be significantly lower, however. Economists at the \u003ca href=\"https://www.richmondfed.org/publications/research/economic_brief/2024/eb_24-08\">Federal Reserve Bank of Richmond\u003c/a> estimate the changes could save homebuyers $30 billion a year, with most of those savings coming out of the pockets of real estate agents.\u003c/p>\n\u003ch2>What does this mean for agents?\u003c/h2>\n\u003cp>Agents are still sorting out what this might mean for their business. When fees are more negotiable, agents will have to make the case for what they’re worth. But the best agents feel like they do that already.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘Do I think that Realtors have to learn to do business in a different way? Absolutely. But I also think this is a wrinkle in the landscape. Not a landmine.’","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"Kevin Wilson, president, Greater Nashville Realtors","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>“Do I think that Realtors have to learn to do business in a different way? Absolutely,” says Kevin Wilson, president of the Greater Nashville Realtors. “But I also think this is a wrinkle in the landscape. Not a landmine.”\u003c/p>\n\u003cp>A drop in commissions might drive some agents into other lines of work, but that’s not necessarily a bad thing. The U.S. has 2.5 to 3 million real estate agents — which is far more than any other country, relative to the size of its housing market. For example, the U.S. has about six times more home sales each year than the U.K. does, but 26 times more agents.\u003c/p>\n\u003cp>“Do we see agents that work with buyers start to phase out of the business because they’re just not getting as many clients?” asks Jovani Ortiz, an agent on Long Island. “These are sort of the unknowns that most agents are looking at right now.”\u003c/p>\n\u003cp>While the commission pie is likely to shrink, it may be cut into fewer slices, so the remaining agents might end up making the same amount of money.\u003c/p>\n\u003ch2>With home prices and mortgage rates already high, how will homebuyers pay for their own agents?\u003c/h2>\n\u003cp>While sellers have traditionally paid buyers’ agents in the U.S. (and built that expense into the sales price of their home), many sellers may opt not to pay buyers’ agents in the future. In that case, buyers will have to pay their own agent out of pocket, on top of a down payment and other closing costs. Finding thousands of dollars to pay an agent could be a challenge, especially for first-time buyers, who typically have limited funds and also the greatest need for an agent’s guidance. First-time buyers accounted for just 26% of existing home sales in February — tying a record low.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘Many first time buyers are already at the absolute max of what they’re able to borrow. They’re not going to be able to come up with any additional cash to pay their own agent’","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"Vanessa Perry, professor, George Washington University School of Business","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>“Many first time buyers are already at the absolute max of what they’re able to borrow,” says Vanessa Perry, a professor at George Washington University School of Business and a fellow at the Urban Institute’s Housing Policy Finance Center. “They’re not going to be able to come up with any additional cash to pay their own agent.”\u003c/p>\n\u003cdiv>\n\u003cp>Home sellers could still agree through negotiation to pay the buyer’s agent. But in a hot housing market, sellers may have little incentive to do so. Eventually, buyers may be able to fold the cost of their agent’s commission into their mortgage, stretching the payments out over the life of the loan. But that will require a change in mortgage underwriting rules. Over time, lower real estate commissions should lead to somewhat lower housing prices.\u003c/p>\n\u003ch2>What should people who are thinking of buying or selling in the next six months do?\u003c/h2>\n\u003cp>The settlement’s changes in commission rules take effect in July, just as many people will be shopping for homes ahead of a new school year. But it’s not clear how quickly the landscape will change. Buyers and sellers may want to talk with their agent about the costs and benefits of moving before the deadline or waiting until the new rules are in place. Remember, commissions account for $20,000 to $24,000 on a typical home. Still, that’s just one factor to consider when deciding when to buy or sell — along with interest rates, the supply of homes on the market and life circumstances like a new job or family member.\u003c/p>\n\u003c/div>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11980592/recently-sold-a-home-you-might-get-part-of-your-realtor-fee-back","authors":["byline_news_11980592"],"categories":["news_1758","news_6266","news_8"],"tags":["news_28791","news_1775","news_137","news_33923"],"affiliates":["news_253"],"featImg":"news_11980601","label":"news_253"},"news_11980019":{"type":"posts","id":"news_11980019","meta":{"index":"posts_1591205157","site":"news","id":"11980019","score":null,"sort":[1710932425000]},"guestAuthors":[],"slug":"national-association-realtors-class-action-lawsuit-buy-sell-house-california-is-about-to-change-heres-how","title":"Buying and Selling a Home in California Is About to Change: Here's How","publishDate":1710932425,"format":"standard","headTitle":"Buying and Selling a Home in California Is About to Change: Here’s How | KQED","labelTerm":{"site":"news"},"content":"\u003cp>The National Association of Realtors, one of the most powerful real estate groups in the country, announced on Friday it would settle a major class-action lawsuit that had accused the group of artificially inflating the commissions its agents make in home sales.\u003c/p>\n\u003cp>In 2021, Americans collectively paid real estate agents around \u003ca href=\"https://www.bloomberg.com/news/articles/2021-07-09/real-estate-agents-eye-record-100-billion-as-home-sales-boom?embedded-checkout=true\">$100 billion in commissions\u003c/a>. But that’s expected to go down by an estimated 20%–50% if a court approves the settlement agreement, Steve Berman, a managing partner at Hagens Berman, which represented the plaintiffs, said in \u003ca href=\"https://www.hbsslaw.com/cases/real-estate-broker-commissions-antitrust\">a statement\u003c/a>.\u003c/p>\n\u003cp>“This is a seismic shift in the real estate market,” he said.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Nykia Wright, interim CEO, NAR\"]‘It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals.’[/pullquote]Without admitting wrongdoing, the association said it would pay $418 million over approximately four years. It also gave up its right to appeal and agreed to change its practices around setting commissions.\u003c/p>\n\u003cp>“It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible,” Nykia Wright, interim CEO of the NAR, said in \u003ca href=\"https://www.nar.realtor/newsroom/nar-reaches-agreement-to-resolve-nationwide-claims-brought-by-home-sellers\">a statement\u003c/a>. “This settlement achieves both of those goals.”\u003c/p>\n\u003cp>For people looking to buy or sell a home, here’s what this settlement means:\u003c/p>\n\u003ch2>\u003cstrong>How do real estate agents get their commissions today? \u003c/strong>\u003c/h2>\n\u003cp>Imagine you’re on Zillow or Redfin, looking to buy a home. You see the list price for a home, but what you might not realize is that the commission for both the buyer’s and seller’s agents is baked into that price.\u003c/p>\n\u003cp>In the 1990s, the National Association of Realtors made it mandatory to publish in the home listing how much agents stand to make from a sale. While there isn’t a set rule for how much the commission should be, it became industry practice to set it around 5%–6%.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The lawsuit, filed in April 2019 by a group of home sellers in Missouri, argued the rule encouraged realtors to steer their clients away from homes with a lower commission and toward more expensive ones — where they could make a larger profit. It also meant home buyers and sellers were sometimes unaware of how the commission rates were set, discouraging them from negotiating that rate.\u003c/p>\n\u003ch2>\u003cstrong>How does the proposed settlement change things? \u003c/strong>\u003c/h2>\n\u003cp>The settlement agreement, slated to go into effect in mid-July, would no longer allow agents to publish the commission in the listing. That rate would be set during negotiations.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Ted Tozer, fellow, Urban Institute\"]‘What the lawsuit was all about was that the sellers felt like they should have more control. I should have the ability to have a say in what I’m paying.’[/pullquote]Previously, the buyer’s and seller’s agents would split the commission, but now, the buyer and seller will both be responsible for paying their respective agents.\u003c/p>\n\u003cp>“What the settlement does is [it] enables both the buyer and the seller to negotiate with the broker upfront of what level of service they want and what their fees are going to be,” said Ted Tozer, a fellow at the Urban Institute, who specializes in housing finance. “I think, in the long run, this is very positive.”\u003c/p>\n\u003ch2>\u003cstrong>How will the world of real estate change? \u003c/strong>\u003c/h2>\n\u003cp>Likely, quite a bit.\u003c/p>\n\u003cp>Because commission rates can’t be set up front, realtors will have to compete for business and may offer lower rates to their clients. But it could also mean bad news for part-time realtors, who have otherwise relied on that 5%–6% commission as an occasional income.\u003c/p>\n\u003cp>“If you’re a realtor and you only sell a couple houses a month, you’re going to have a tough time making it,” Tozer said. “You will probably have less realtors in numbers, but the ones that are doing business are probably going to be more effective at what they’re doing because they’ll have to make it a full-time job.”\u003c/p>\n\u003ch2>\u003cstrong>What does all this mean for me, a home buyer or seller? \u003c/strong>\u003c/h2>\n\u003cp>Firstly, because this is a class-action lawsuit, some home sellers might be entitled to compensation. But it doesn’t include California. It only pertains to metro areas in Arizona, Colorado, Florida, Nevada, North Carolina, Ohio, Texas, Utah, Minnesota, Pennsylvania, Virginia and Washington, D.C.\u003c/p>\n\u003cp>That said, the proposed settlement will likely empower home buyers and sellers to negotiate the commission rate with their agents.\u003c/p>\n\u003cp>“What the lawsuit was all about was that the sellers felt like they should have more control,” Tozer said. “I should have the ability to have a say in what I’m paying.”\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"National Association of Realtors, one of the nation's largest real estate groups, has announced they’re settling a major antitrust lawsuit. What does that mean for homebuyers and sellers? ","status":"publish","parent":0,"modified":1710952495,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":20,"wordCount":840},"headData":{"title":"Buying and Selling a Home in California Is About to Change: Here's How | KQED","description":"National Association of Realtors, one of the nation's largest real estate groups, has announced they’re settling a major antitrust lawsuit. What does that mean for homebuyers and sellers? ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"sticky":false,"excludeFromSiteSearch":"Include","articleAge":"0","path":"/news/11980019/national-association-realtors-class-action-lawsuit-buy-sell-house-california-is-about-to-change-heres-how","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>The National Association of Realtors, one of the most powerful real estate groups in the country, announced on Friday it would settle a major class-action lawsuit that had accused the group of artificially inflating the commissions its agents make in home sales.\u003c/p>\n\u003cp>In 2021, Americans collectively paid real estate agents around \u003ca href=\"https://www.bloomberg.com/news/articles/2021-07-09/real-estate-agents-eye-record-100-billion-as-home-sales-boom?embedded-checkout=true\">$100 billion in commissions\u003c/a>. But that’s expected to go down by an estimated 20%–50% if a court approves the settlement agreement, Steve Berman, a managing partner at Hagens Berman, which represented the plaintiffs, said in \u003ca href=\"https://www.hbsslaw.com/cases/real-estate-broker-commissions-antitrust\">a statement\u003c/a>.\u003c/p>\n\u003cp>“This is a seismic shift in the real estate market,” he said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals.’","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"Nykia Wright, interim CEO, NAR","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Without admitting wrongdoing, the association said it would pay $418 million over approximately four years. It also gave up its right to appeal and agreed to change its practices around setting commissions.\u003c/p>\n\u003cp>“It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible,” Nykia Wright, interim CEO of the NAR, said in \u003ca href=\"https://www.nar.realtor/newsroom/nar-reaches-agreement-to-resolve-nationwide-claims-brought-by-home-sellers\">a statement\u003c/a>. “This settlement achieves both of those goals.”\u003c/p>\n\u003cp>For people looking to buy or sell a home, here’s what this settlement means:\u003c/p>\n\u003ch2>\u003cstrong>How do real estate agents get their commissions today? \u003c/strong>\u003c/h2>\n\u003cp>Imagine you’re on Zillow or Redfin, looking to buy a home. You see the list price for a home, but what you might not realize is that the commission for both the buyer’s and seller’s agents is baked into that price.\u003c/p>\n\u003cp>In the 1990s, the National Association of Realtors made it mandatory to publish in the home listing how much agents stand to make from a sale. While there isn’t a set rule for how much the commission should be, it became industry practice to set it around 5%–6%.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The lawsuit, filed in April 2019 by a group of home sellers in Missouri, argued the rule encouraged realtors to steer their clients away from homes with a lower commission and toward more expensive ones — where they could make a larger profit. It also meant home buyers and sellers were sometimes unaware of how the commission rates were set, discouraging them from negotiating that rate.\u003c/p>\n\u003ch2>\u003cstrong>How does the proposed settlement change things? \u003c/strong>\u003c/h2>\n\u003cp>The settlement agreement, slated to go into effect in mid-July, would no longer allow agents to publish the commission in the listing. That rate would be set during negotiations.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘What the lawsuit was all about was that the sellers felt like they should have more control. I should have the ability to have a say in what I’m paying.’","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"Ted Tozer, fellow, Urban Institute","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Previously, the buyer’s and seller’s agents would split the commission, but now, the buyer and seller will both be responsible for paying their respective agents.\u003c/p>\n\u003cp>“What the settlement does is [it] enables both the buyer and the seller to negotiate with the broker upfront of what level of service they want and what their fees are going to be,” said Ted Tozer, a fellow at the Urban Institute, who specializes in housing finance. “I think, in the long run, this is very positive.”\u003c/p>\n\u003ch2>\u003cstrong>How will the world of real estate change? \u003c/strong>\u003c/h2>\n\u003cp>Likely, quite a bit.\u003c/p>\n\u003cp>Because commission rates can’t be set up front, realtors will have to compete for business and may offer lower rates to their clients. But it could also mean bad news for part-time realtors, who have otherwise relied on that 5%–6% commission as an occasional income.\u003c/p>\n\u003cp>“If you’re a realtor and you only sell a couple houses a month, you’re going to have a tough time making it,” Tozer said. “You will probably have less realtors in numbers, but the ones that are doing business are probably going to be more effective at what they’re doing because they’ll have to make it a full-time job.”\u003c/p>\n\u003ch2>\u003cstrong>What does all this mean for me, a home buyer or seller? \u003c/strong>\u003c/h2>\n\u003cp>Firstly, because this is a class-action lawsuit, some home sellers might be entitled to compensation. But it doesn’t include California. It only pertains to metro areas in Arizona, Colorado, Florida, Nevada, North Carolina, Ohio, Texas, Utah, Minnesota, Pennsylvania, Virginia and Washington, D.C.\u003c/p>\n\u003cp>That said, the proposed settlement will likely empower home buyers and sellers to negotiate the commission rate with their agents.\u003c/p>\n\u003cp>“What the lawsuit was all about was that the sellers felt like they should have more control,” Tozer said. “I should have the ability to have a say in what I’m paying.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11980019/national-association-realtors-class-action-lawsuit-buy-sell-house-california-is-about-to-change-heres-how","authors":["11672"],"categories":["news_6266","news_6188","news_8"],"tags":["news_27626","news_1775","news_137"],"featImg":"news_11980080","label":"news"},"news_11979610":{"type":"posts","id":"news_11979610","meta":{"index":"posts_1591205157","site":"news","id":"11979610","score":null,"sort":[1710594054000]},"guestAuthors":[],"slug":"after-the-fires-a-maui-community-creates-a-land-trust-to-keep-homes-in-local-hands","title":"After the Fires, a Maui Community Creates a Land Trust to Keep Homes in Local Hands","publishDate":1710594054,"format":"standard","headTitle":"After the Fires, a Maui Community Creates a Land Trust to Keep Homes in Local Hands | KQED","labelTerm":{"term":253,"site":"news"},"content":"\u003cp>Several months after Mikey Burke’s house burned down in Lahaina, her husband got a text message out of the blue. It was an offer to buy their property with no inspections.\u003c/p>\n\u003cp>“He’s gotten a couple of those,” Burke says. “Fighting against speculators and large developers coming in is nothing new for us, but we’ve never had it where it’s been this important to our very being as this community.”\u003c/p>\n\u003cp>Burke and her family are among hundreds in Lahaina who are navigating the long and arduous process of rebuilding. More than seven months after the wildfire that took 101 lives, hundreds of properties are still covered in piles of debris.\u003c/p>\n\u003cp>Some fire survivors have \u003ca href=\"https://www.npr.org/2024/02/19/1231191740/maui-fire-survivors-struggle-to-find-long-term-housing-half-a-year-after-the-bla\">moved into rental properties outside Lahaina\u003c/a>. Others are finding new jobs or schools elsewhere on Maui or in the continental U.S. \u003ca href=\"https://www.npr.org/2023/08/23/1195387894/lahaina-residents-worry-developers-will-scoop-up-land-after-the-recent-wildfires#:~:text=Transcript-,NPR's%20Leila%20Fadel%20talks%20to%20Tiare%20Lawrence%2C%20who%20belongs%20to,land%20after%20the%20recent%20wildfires.\">Many Lahaina residents worry\u003c/a> that developers will buy up properties as they become available, changing the makeup of a community that was once the historic capital of the Hawaiian Kingdom.\u003c/p>\n\u003cp>“If we have enough of that happening, the village we grew up in is not going to be the village that we want to raise our kids in,” Burke says. “This community is so important to who we are.”\u003c/p>\n\u003cfigure id=\"attachment_11979614\" class=\"wp-caption alignnone\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11979614\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1704\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-1020x679.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-1536x1023.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-2048x1363.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-1920x1278.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">West Maui is a center of the tourism industry, raising concerns in the community that developers will buy properties destroyed in the fire as they come up for sale. \u003ccite>(Ryan Kellman/NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Now, some community members are \u003ca href=\"https://lahainacommunitylandtrust.org/\">working on a way to buy properties\u003c/a> so they can remain affordable and available to local residents. It’s a nonprofit community land trust modeled after ones \u003ca href=\"https://www.npr.org/2023/04/09/1168839399/community-land-trusts-are-providing-a-solution-to-gentrification\">used around the country for affordable housing.\u003c/a> Land trusts purchase properties and then sell or rent the houses. When the homes are for purchase, the trust keeps ownership of the land they’re built on, so the overall sale price is less than comparable homes.\u003c/p>\n\u003cp>Community land trusts have emerged in a handful of other places recovering from disasters, like \u003ca href=\"https://nextcity.org/urbanist-news/community-land-trusts-are-building-disaster-resilient-neighborhoods\">Houston\u003c/a> and the \u003ca href=\"https://www.wlrn.org/news/2018-08-16/in-post-irma-keys-one-tiny-new-home-is-cause-for-major-celebration\">Florida Keys\u003c/a> after both places were hit by hurricanes. The challenge is mobilizing financial resources in time to purchase properties in the crucial years post-disaster when properties go up for sale.\u003c/p>\n\u003cp>“The number of units destroyed that are housing people affordably always outnumbers the amount that you rebuild,” says Steve Kirk, president of Rural Communities, an affordable housing nonprofit affiliated with the \u003ca href=\"https://www.affordablekeys.org/\">Florida Keys Community Land Trust\u003c/a>. “There are individuals and corporations with strike capital that can step into that void and acquire that land.”\u003c/p>\n\u003cfigure id=\"attachment_11979616\" class=\"wp-caption alignnone\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11979616\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-scaled.jpg\" alt=\"\" width=\"2560\" height=\"845\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-800x264.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-1020x337.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-160x53.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-1536x507.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-2048x676.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-1920x634.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">Maui’s striking volcano and scenic beaches are a major draw for tourists. Half of all condo sales on the island are to out-of-state buyers. \u003ccite>(Ryan Kellman/NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>Challenges to rebuilding\u003c/h2>\n\u003cp>Life is still in upheaval for Burke and her family. For months after the fire, her family of four kids and four dogs lived in two hotel rooms. Recently, they moved into a longer-term rental north of Lahaina. Her kids go to a Hawaiian language immersion school right next to the burn zone, so all four are doing distance learning by computer from home.\u003c/p>\n\u003cp>They’re still grappling with memories from the day of the fire. As the smoke approached their house, Burke loaded the kids into the car. But the traffic was at a standstill in the rush to evacuate Lahaina. They watched as the flames kept getting closer.\u003c/p>\n\u003cp>“I was telling the kids: if mommy opens the door, you run straight and you run to the ocean,” she says. “I will never forget that feeling because I didn’t know if it was OK.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Their house was destroyed. The burned debris is still awaiting removal, like hundreds of other properties in Lahaina. But Burke’s family is already navigating the rebuilding process. Burke says they received a dollar estimate for what their insurance company will pay them, but they’re not sure if it will be enough to cover the cost of rebuilding with contractors in such high demand.\u003c/p>\n\u003cp>“Of course in August, everyone was like: yeah, we’re going to rebuild,” Burke says. “But now, we’re looking at the actual money we have to rebuild and have to make a decision. Do we rebuild? What can we even rebuild? Or do we sell?”\u003c/p>\n\u003cp>She’s heard from others from Lahaina going through the same struggle. Some who are older may not be up for the long rebuilding process. Some are underinsured and won’t have enough to rebuild what they had. Burke says she’s determined to stay, but concern is high that the community she grew up in will be forever altered.\u003c/p>\n\u003cfigure id=\"attachment_11979617\" class=\"wp-caption alignnone\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11979617\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1704\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-1020x679.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-1536x1023.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-2048x1363.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-1920x1278.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">Over 7 months after the fire, most properties that were burned in Lahaina are still covered with debris. \u003ccite>(Ryan Kellman/NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>‘Selling in, instead of selling out’\u003c/h2>\n\u003cp>Keeping the community together was on Burke’s mind when she ran into two people working on a potential way to help: Carolyn Auweloa and Autumn Ness. Having worked on housing policy, Ness and Auweloa were aware of the community land trust model and decided to start one for Lahaina. The goal of land trusts is to keep housing affordable in the long term since the buyer agrees to sell the home at a restricted price whenever they choose to sell.\u003c/p>\n\u003cfigure id=\"attachment_11979618\" class=\"wp-caption alignright\" style=\"max-width: 1000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11979618\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/0b6a1287-copy_custom-7c5e76759d3a2dbfed0a6152c4ae0608e71982f0-s1000-c85-copy.jpg\" alt=\"\" width=\"1000\" height=\"1501\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/0b6a1287-copy_custom-7c5e76759d3a2dbfed0a6152c4ae0608e71982f0-s1000-c85-copy.jpg 1000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/0b6a1287-copy_custom-7c5e76759d3a2dbfed0a6152c4ae0608e71982f0-s1000-c85-copy-800x1201.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/0b6a1287-copy_custom-7c5e76759d3a2dbfed0a6152c4ae0608e71982f0-s1000-c85-copy-160x240.jpg 160w\" sizes=\"(max-width: 1000px) 100vw, 1000px\">\u003cfigcaption class=\"wp-caption-text\">Autumn Ness, who has worked on housing and local food policy on Maui, says the land trust would be led by the Lahaina community as it re-envisions its future. \u003ccite>(Ryan Kellman/NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\u003ca href=\"https://cltweb.org/clt-directory/\">Dozens of community land trusts\u003c/a> have been established around the country to boost the affordable housing supply. As climate-driven disasters have taken a bigger and bigger toll, land trusts are getting new attention.\u003c/p>\n\u003cp>Ness says the wildfires only increased the already-existing pressure on Maui’s housing market. With its stunning ocean views and rich history, Lahaina was a tourism hotspot. Short-term rentals, driven by Airbnb and VRBO, \u003ca href=\"https://uhero.hawaii.edu/wp-content/uploads/2023/06/TheHawaiiHousingFactbook.pdf\">made up 40% of the total housing supply (PDF)\u003c/a> in Lahaina’s zip code. And in Maui County more broadly, half of all condominium sales \u003ca href=\"https://uhero.hawaii.edu/wp-content/uploads/2023/06/TheHawaiiHousingFactbook.pdf\">are to out-of-state buyers (PDF)\u003c/a>.\u003c/p>\n\u003cp>“We’ve seen Lahaina be sold to investors parcel by parcel over the last couple of generations, so it was just like: oh my god, we’re super vulnerable,” Ness says.\u003c/p>\n\u003cp>The \u003ca href=\"https://lahainacommunitylandtrust.org/\">Lahaina Community Land Trust\u003c/a>, as they’ve named it, is still in the early stages and is starting to raise money through donations. Ness says it could do more than just build housing. They could buy some properties that are of cultural value to Native Hawaiians and preserve them for the community. They could buy other properties at risk of being flooded by sea level rise and not build on them at all.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Autumn Ness\"]‘We’ve seen Lahaina be sold to investors parcel by parcel over the last couple of generations, so it was just like: oh my god, we’re super vulnerable.’[/pullquote]“People talk about the land trust as a way to sell in, instead of selling out,” Ness says. “If you have to sell — not your fault, no judgment. How can we make sure you have what you need and the land stays in the highest and best interest of the community?”\u003c/p>\n\u003cp>Burke decided to join the effort to develop the land trust, which she says will hopefully lessen the pain for neighbors who choose to leave Lahaina.\u003c/p>\n\u003cp>“We know we can’t save every parcel that’s gonna come up to be sold,” Burke says. “But if we’re an option on somebody’s table so if they have to walk away, they can do it in good conscience, that’s all we’re there for.”\u003c/p>\n\u003ch2>Land trusts are growing after disasters\u003c/h2>\n\u003cp>When hurricanes, floods and wildfires destroy housing, the ensuing upheaval can permanently shift the makeup of a community. In the wake of Hurricane Katrina, which hit New Orleans in 2005, \u003ca href=\"https://www.riskproject.org/wp-content/uploads/2019/02/Graif_Popul_Environ_2016.pdf\">a third of displaced residents (PDF)\u003c/a> still had not returned after three years, and lower-income residents were the most vulnerable to being displaced. Neighborhoods damaged by flooding \u003ca href=\"https://journals.sagepub.com/doi/abs/10.1177/0042098018800445?journalCode=usja\">were also more likely to experience gentrification\u003c/a>.\u003c/p>\n\u003cp>After Hurricane Irma hit the Florida Keys in 2017, the Florida Keys Community Land Trust was established. Like in Lahaina, land values are high there, driven by tourism and restrictions on development.\u003c/p>\n\u003cp>“Vacation rentals command so much money that even in the absence of any storm, we are losing service worker housing on a month-to-month basis,” says Kirk, who works on the land trust as well as affordable housing around Florida.\u003c/p>\n\u003cfigure id=\"attachment_11979619\" class=\"wp-caption alignnone\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11979619\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-scaled.jpg\" alt=\"\" width=\"2560\" height=\"845\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-800x264.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-1020x337.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-160x53.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-1536x507.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-2048x676.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-1920x634.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">Community land trusts are used widely around the US, but have only recently started in communities hit by disasters like wildfires and hurricanes. \u003ccite>(Ryan Kellman/NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The trust built 31 affordable units on property that went up for sale after the hurricane. It began with a private donation, but the trust eventually secured a \u003ca href=\"https://www.hud.gov/program_offices/comm_planning/cdbg-dr\">federal grant earmarked for disaster recovery\u003c/a>. Kirk says securing funding quickly is key since many properties are put up for sale within just a few years of a disaster.\u003c/p>\n\u003cp>“Public funding is really a necessity in order to preserve land in the aftermath of a disaster, particularly in an affluent location,” Kirk says. “Because in the absence of that, market conditions will cause speculators and others to step into that land and end up serving a completely different income level.”\u003c/p>\n\u003cp>In Lahaina, Burke says organizers aren’t sure how many properties the land trust might be able to buy, but they hope to start within the next six months.\u003c/p>\n\u003cp>“I don’t think we’re at a place where we can’t come back and still make this a beautiful, vibrant community,” Burke says. “We’re gonna need help and we’re going to continue to need help for years.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"To ward off speculators and developers, the people of Lahaina have created a nonprofit land trust to keep their community together and rebuild after the devastating fires last year.","status":"publish","parent":0,"modified":1710550853,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":31,"wordCount":1737},"headData":{"title":"After the Fires, a Maui Community Creates a Land Trust to Keep Homes in Local Hands | KQED","description":"To ward off speculators and developers, the people of Lahaina have created a nonprofit land trust to keep their community together and rebuild after the devastating fires last year.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"sticky":false,"nprByline":"\u003ca href=\"https://www.npr.org/people/803934365/lauren-sommer\">Lauren Sommer\u003c/a>","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11979610/after-the-fires-a-maui-community-creates-a-land-trust-to-keep-homes-in-local-hands","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Several months after Mikey Burke’s house burned down in Lahaina, her husband got a text message out of the blue. It was an offer to buy their property with no inspections.\u003c/p>\n\u003cp>“He’s gotten a couple of those,” Burke says. “Fighting against speculators and large developers coming in is nothing new for us, but we’ve never had it where it’s been this important to our very being as this community.”\u003c/p>\n\u003cp>Burke and her family are among hundreds in Lahaina who are navigating the long and arduous process of rebuilding. More than seven months after the wildfire that took 101 lives, hundreds of properties are still covered in piles of debris.\u003c/p>\n\u003cp>Some fire survivors have \u003ca href=\"https://www.npr.org/2024/02/19/1231191740/maui-fire-survivors-struggle-to-find-long-term-housing-half-a-year-after-the-bla\">moved into rental properties outside Lahaina\u003c/a>. Others are finding new jobs or schools elsewhere on Maui or in the continental U.S. \u003ca href=\"https://www.npr.org/2023/08/23/1195387894/lahaina-residents-worry-developers-will-scoop-up-land-after-the-recent-wildfires#:~:text=Transcript-,NPR's%20Leila%20Fadel%20talks%20to%20Tiare%20Lawrence%2C%20who%20belongs%20to,land%20after%20the%20recent%20wildfires.\">Many Lahaina residents worry\u003c/a> that developers will buy up properties as they become available, changing the makeup of a community that was once the historic capital of the Hawaiian Kingdom.\u003c/p>\n\u003cp>“If we have enough of that happening, the village we grew up in is not going to be the village that we want to raise our kids in,” Burke says. “This community is so important to who we are.”\u003c/p>\n\u003cfigure id=\"attachment_11979614\" class=\"wp-caption alignnone\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11979614\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1704\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-1020x679.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-1536x1023.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-2048x1363.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0823-edit-copy_custom-1c8f8b1c2444cf6cb8a2caa95c83485ec1758b99-s2600-c85-copy-1920x1278.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">West Maui is a center of the tourism industry, raising concerns in the community that developers will buy properties destroyed in the fire as they come up for sale. \u003ccite>(Ryan Kellman/NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Now, some community members are \u003ca href=\"https://lahainacommunitylandtrust.org/\">working on a way to buy properties\u003c/a> so they can remain affordable and available to local residents. It’s a nonprofit community land trust modeled after ones \u003ca href=\"https://www.npr.org/2023/04/09/1168839399/community-land-trusts-are-providing-a-solution-to-gentrification\">used around the country for affordable housing.\u003c/a> Land trusts purchase properties and then sell or rent the houses. When the homes are for purchase, the trust keeps ownership of the land they’re built on, so the overall sale price is less than comparable homes.\u003c/p>\n\u003cp>Community land trusts have emerged in a handful of other places recovering from disasters, like \u003ca href=\"https://nextcity.org/urbanist-news/community-land-trusts-are-building-disaster-resilient-neighborhoods\">Houston\u003c/a> and the \u003ca href=\"https://www.wlrn.org/news/2018-08-16/in-post-irma-keys-one-tiny-new-home-is-cause-for-major-celebration\">Florida Keys\u003c/a> after both places were hit by hurricanes. The challenge is mobilizing financial resources in time to purchase properties in the crucial years post-disaster when properties go up for sale.\u003c/p>\n\u003cp>“The number of units destroyed that are housing people affordably always outnumbers the amount that you rebuild,” says Steve Kirk, president of Rural Communities, an affordable housing nonprofit affiliated with the \u003ca href=\"https://www.affordablekeys.org/\">Florida Keys Community Land Trust\u003c/a>. “There are individuals and corporations with strike capital that can step into that void and acquire that land.”\u003c/p>\n\u003cfigure id=\"attachment_11979616\" class=\"wp-caption alignnone\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11979616\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-scaled.jpg\" alt=\"\" width=\"2560\" height=\"845\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-800x264.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-1020x337.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-160x53.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-1536x507.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-2048x676.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip-copy_custom-ccd780a6287ce9de1f7f1dea4eabc316971db35a-s2600-c85-copy-1920x634.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">Maui’s striking volcano and scenic beaches are a major draw for tourists. Half of all condo sales on the island are to out-of-state buyers. \u003ccite>(Ryan Kellman/NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>Challenges to rebuilding\u003c/h2>\n\u003cp>Life is still in upheaval for Burke and her family. For months after the fire, her family of four kids and four dogs lived in two hotel rooms. Recently, they moved into a longer-term rental north of Lahaina. Her kids go to a Hawaiian language immersion school right next to the burn zone, so all four are doing distance learning by computer from home.\u003c/p>\n\u003cp>They’re still grappling with memories from the day of the fire. As the smoke approached their house, Burke loaded the kids into the car. But the traffic was at a standstill in the rush to evacuate Lahaina. They watched as the flames kept getting closer.\u003c/p>\n\u003cp>“I was telling the kids: if mommy opens the door, you run straight and you run to the ocean,” she says. “I will never forget that feeling because I didn’t know if it was OK.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Their house was destroyed. The burned debris is still awaiting removal, like hundreds of other properties in Lahaina. But Burke’s family is already navigating the rebuilding process. Burke says they received a dollar estimate for what their insurance company will pay them, but they’re not sure if it will be enough to cover the cost of rebuilding with contractors in such high demand.\u003c/p>\n\u003cp>“Of course in August, everyone was like: yeah, we’re going to rebuild,” Burke says. “But now, we’re looking at the actual money we have to rebuild and have to make a decision. Do we rebuild? What can we even rebuild? Or do we sell?”\u003c/p>\n\u003cp>She’s heard from others from Lahaina going through the same struggle. Some who are older may not be up for the long rebuilding process. Some are underinsured and won’t have enough to rebuild what they had. Burke says she’s determined to stay, but concern is high that the community she grew up in will be forever altered.\u003c/p>\n\u003cfigure id=\"attachment_11979617\" class=\"wp-caption alignnone\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11979617\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1704\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-1020x679.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-1536x1023.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-2048x1363.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/d9a0816-edit_custom-f6b47bba705382ff21e8ba6a7918ca13555eff0c-s2600-c85-copy-1920x1278.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">Over 7 months after the fire, most properties that were burned in Lahaina are still covered with debris. \u003ccite>(Ryan Kellman/NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>‘Selling in, instead of selling out’\u003c/h2>\n\u003cp>Keeping the community together was on Burke’s mind when she ran into two people working on a potential way to help: Carolyn Auweloa and Autumn Ness. Having worked on housing policy, Ness and Auweloa were aware of the community land trust model and decided to start one for Lahaina. The goal of land trusts is to keep housing affordable in the long term since the buyer agrees to sell the home at a restricted price whenever they choose to sell.\u003c/p>\n\u003cfigure id=\"attachment_11979618\" class=\"wp-caption alignright\" style=\"max-width: 1000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11979618\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/0b6a1287-copy_custom-7c5e76759d3a2dbfed0a6152c4ae0608e71982f0-s1000-c85-copy.jpg\" alt=\"\" width=\"1000\" height=\"1501\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/0b6a1287-copy_custom-7c5e76759d3a2dbfed0a6152c4ae0608e71982f0-s1000-c85-copy.jpg 1000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/0b6a1287-copy_custom-7c5e76759d3a2dbfed0a6152c4ae0608e71982f0-s1000-c85-copy-800x1201.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/0b6a1287-copy_custom-7c5e76759d3a2dbfed0a6152c4ae0608e71982f0-s1000-c85-copy-160x240.jpg 160w\" sizes=\"(max-width: 1000px) 100vw, 1000px\">\u003cfigcaption class=\"wp-caption-text\">Autumn Ness, who has worked on housing and local food policy on Maui, says the land trust would be led by the Lahaina community as it re-envisions its future. \u003ccite>(Ryan Kellman/NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\u003ca href=\"https://cltweb.org/clt-directory/\">Dozens of community land trusts\u003c/a> have been established around the country to boost the affordable housing supply. As climate-driven disasters have taken a bigger and bigger toll, land trusts are getting new attention.\u003c/p>\n\u003cp>Ness says the wildfires only increased the already-existing pressure on Maui’s housing market. With its stunning ocean views and rich history, Lahaina was a tourism hotspot. Short-term rentals, driven by Airbnb and VRBO, \u003ca href=\"https://uhero.hawaii.edu/wp-content/uploads/2023/06/TheHawaiiHousingFactbook.pdf\">made up 40% of the total housing supply (PDF)\u003c/a> in Lahaina’s zip code. And in Maui County more broadly, half of all condominium sales \u003ca href=\"https://uhero.hawaii.edu/wp-content/uploads/2023/06/TheHawaiiHousingFactbook.pdf\">are to out-of-state buyers (PDF)\u003c/a>.\u003c/p>\n\u003cp>“We’ve seen Lahaina be sold to investors parcel by parcel over the last couple of generations, so it was just like: oh my god, we’re super vulnerable,” Ness says.\u003c/p>\n\u003cp>The \u003ca href=\"https://lahainacommunitylandtrust.org/\">Lahaina Community Land Trust\u003c/a>, as they’ve named it, is still in the early stages and is starting to raise money through donations. Ness says it could do more than just build housing. They could buy some properties that are of cultural value to Native Hawaiians and preserve them for the community. They could buy other properties at risk of being flooded by sea level rise and not build on them at all.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘We’ve seen Lahaina be sold to investors parcel by parcel over the last couple of generations, so it was just like: oh my god, we’re super vulnerable.’","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"Autumn Ness","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>“People talk about the land trust as a way to sell in, instead of selling out,” Ness says. “If you have to sell — not your fault, no judgment. How can we make sure you have what you need and the land stays in the highest and best interest of the community?”\u003c/p>\n\u003cp>Burke decided to join the effort to develop the land trust, which she says will hopefully lessen the pain for neighbors who choose to leave Lahaina.\u003c/p>\n\u003cp>“We know we can’t save every parcel that’s gonna come up to be sold,” Burke says. “But if we’re an option on somebody’s table so if they have to walk away, they can do it in good conscience, that’s all we’re there for.”\u003c/p>\n\u003ch2>Land trusts are growing after disasters\u003c/h2>\n\u003cp>When hurricanes, floods and wildfires destroy housing, the ensuing upheaval can permanently shift the makeup of a community. In the wake of Hurricane Katrina, which hit New Orleans in 2005, \u003ca href=\"https://www.riskproject.org/wp-content/uploads/2019/02/Graif_Popul_Environ_2016.pdf\">a third of displaced residents (PDF)\u003c/a> still had not returned after three years, and lower-income residents were the most vulnerable to being displaced. Neighborhoods damaged by flooding \u003ca href=\"https://journals.sagepub.com/doi/abs/10.1177/0042098018800445?journalCode=usja\">were also more likely to experience gentrification\u003c/a>.\u003c/p>\n\u003cp>After Hurricane Irma hit the Florida Keys in 2017, the Florida Keys Community Land Trust was established. Like in Lahaina, land values are high there, driven by tourism and restrictions on development.\u003c/p>\n\u003cp>“Vacation rentals command so much money that even in the absence of any storm, we are losing service worker housing on a month-to-month basis,” says Kirk, who works on the land trust as well as affordable housing around Florida.\u003c/p>\n\u003cfigure id=\"attachment_11979619\" class=\"wp-caption alignnone\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11979619\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-scaled.jpg\" alt=\"\" width=\"2560\" height=\"845\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-800x264.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-1020x337.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-160x53.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-1536x507.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-2048x676.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/hawaiidip2jpg_custom-d162482bb9927c489db86931714d28f8ea208ad5-s2600-c85-copy-1920x634.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">Community land trusts are used widely around the US, but have only recently started in communities hit by disasters like wildfires and hurricanes. \u003ccite>(Ryan Kellman/NPR)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The trust built 31 affordable units on property that went up for sale after the hurricane. It began with a private donation, but the trust eventually secured a \u003ca href=\"https://www.hud.gov/program_offices/comm_planning/cdbg-dr\">federal grant earmarked for disaster recovery\u003c/a>. Kirk says securing funding quickly is key since many properties are put up for sale within just a few years of a disaster.\u003c/p>\n\u003cp>“Public funding is really a necessity in order to preserve land in the aftermath of a disaster, particularly in an affluent location,” Kirk says. “Because in the absence of that, market conditions will cause speculators and others to step into that land and end up serving a completely different income level.”\u003c/p>\n\u003cp>In Lahaina, Burke says organizers aren’t sure how many properties the land trust might be able to buy, but they hope to start within the next six months.\u003c/p>\n\u003cp>“I don’t think we’re at a place where we can’t come back and still make this a beautiful, vibrant community,” Burke says. “We’re gonna need help and we’re going to continue to need help for years.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11979610/after-the-fires-a-maui-community-creates-a-land-trust-to-keep-homes-in-local-hands","authors":["byline_news_11979610"],"categories":["news_8","news_356"],"tags":["news_255","news_27626","news_1775","news_17996","news_137","news_3187"],"affiliates":["news_253"],"featImg":"news_11979613","label":"news_253"},"news_11959201":{"type":"posts","id":"news_11959201","meta":{"index":"posts_1591205157","site":"news","id":"11959201","score":null,"sort":[1693306820000]},"guestAuthors":[],"slug":"bay-area-black-latino-residents-struggle-most-to-become-homeowners","title":"Why Bay Area Black, Latino Residents Struggle Most to Become Homeowners","publishDate":1693306820,"format":"standard","headTitle":"Why Bay Area Black, Latino Residents Struggle Most to Become Homeowners | KQED","labelTerm":{"site":"news"},"content":"\u003cp>Montana Hooks fondly remembers a childhood filled with open houses on the weekends.\u003c/p>\n\u003cp>But the Fremont native wasn’t peering into bedrooms, living rooms and kitchens with her house-hunting family. She often found herself dashing across streets to set up signs to attract prospective buyers for her realtor father.\u003c/p>\n\u003cp>On weekday nights, he taught her to run comps, the process of using home sales data to come up with a house price. Those lessons stayed with Hooks, but she didn’t plan on following in her father’s footsteps.\u003c/p>\n\u003cp>But Hooks, 34, has spent the last few years immersing herself in real estate after leaving a career in corporate marketing.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“Real estate wasn’t something I thought I would do as an adult,” said Hooks, a realtor with eXp Realty. “I always knew, and looking back to my time with my dad, that real estate is definitely a way to create huge transformative wealth in your family if you stick with it.”\u003c/p>\n\u003cp>Selling homes is about much more than properties changing owners, Hooks said. A home gives buyers stability and the feeling of being rooted in a community.\u003c/p>\n\u003cp>Hooks, who is Black, focuses on working with first-time buyers and people of color, mostly Black or Latinx — the type of buyers who struggle the most to purchase homes in the Bay Area.[pullquote size=\"medium\" align=\"right\" citation=\"Montana Hooks, realtor, eXp Realty\"]‘I don’t know if I will ever be able to afford Oakland. It’s like the hairdresser whose hair is always messy or the chef who eats macaroni and cheese at home.’[/pullquote]When she’s not working directly with clients, she writes articles to help buyers understand the home-buying process. A couple of years ago, she launched \u003ca href=\"https://www.bayareablackrealtors.com/\">bayareablackrealtors.com\u003c/a>, a website that matches Black buyers with agents.\u003c/p>\n\u003cp>In 2020, nationwide, just \u003ca href=\"https://datausa.io/profile/soc/real-estate-brokers-sales-agents?ethnicity-gender=genderAllE&races-filter=shareR\">6% of realtors and real estate agents identified as Black while 11% identified as Hispanic.\u003c/a>\u003c/p>\n\u003cp>“I can’t even tell you how infrequently I see another Black listing agent,” Hooks said. “And I can’t tell you how many times I’ve been looked at with a side-eye when I show up to sell a home, even in Oakland.”\u003c/p>\n\u003cp>She continued: “The more people of color that work in real estate on any of these sides of the transactions, the less inequity that buyers of color will feel when they’re going through the buying process or when they’re trying to sell their home.”\u003c/p>\n\u003cp>While Hooks is dedicated to selling homes to people of color, she has yet to buy one for herself.\u003c/p>\n\u003cp>“I don’t know if I will ever be able to afford Oakland,” she said. “It’s like the hairdresser whose hair is always messy or the chef who eats macaroni and cheese at home.”\u003c/p>\n\u003cp>Homeownership is the most common pathway to build wealth in the U.S., but the cost of owning a home is increasingly out of reach for first-time buyers. In August, the average 30-year mortgage rate reached the highest level — 7.23% — in more than two decades, according to mortgage buyer Freddie Mac. High interest rates and low inventory have combined to create a daunting atmosphere for people looking for their starter home.\u003c/p>\n\u003cp>Hooks’ experience underscores a paradox many would-be Latinx and Black buyers face: Not coming from generational wealth makes it harder to accumulate wealth. From 2011 to 2021, Black homeownership in the Bay Area ranged between 29% and 33%, according to U.S. Census data. For Latinos, the rate ranged between 35% and 39%. At around 60%, both white and Asian households, have the highest homeownership rates in the Bay Area.\u003c/p>\n\u003cp>Both Latino and Black households in the Bay Area own homes at lower rates than they do statewide or \u003ca href=\"https://www.jchs.harvard.edu/blog/nearly-every-state-people-color-are-less-likely-own-homes-compared-white-households#:~:text=However%2C%20the%20racial%20homeownership%20gap,points%20lower%20than%20white%20households.\">across the country.\u003c/a> More often than not, clients come to Hooks excited to shop for a house only to find that they don’t qualify for a mortgage, can’t afford the location they want or simply can’t find any houses in their price ranges.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" title=\"Bay Area Homeownership Rates by Race\" aria-label=\"Interactive line chart\" id=\"datawrapper-chart-PGYfC\" src=\"https://datawrapper.dwcdn.net/PGYfC/5/\" scrolling=\"no\" frameborder=\"0\" style=\"border: none;\" width=\"1000\" height=\"600\" data-external=\"1\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>The Black and Latinx rates are low, but it’s not because they don’t want to own homes, according to Rebecca Gallardo, a Latina realtor in San José for more than 30 years.\u003c/p>\n\u003cp>“At the end of the day, homeownership for Latinos and African Americans creates not just general generational wealth, but also contributes to the socialization of your family and creates sustainability,” said Gallardo, a former board member for the National Association of Hispanic Real Estate Professionals.\u003c/p>\n\u003cp>In California, more than half of all households — 54.4% — own homes, but Blacks and Latinos are the only demographic groups that have homeowner rates under 50% at 34.5% and 43.2%, respectively. The trend is related to the unaffordable market, according to Jung Hyun Choi, a senior research associate with the Housing Finance Policy Center at the Urban Institute, a think tank focused on economic and social equity.[pullquote size=\"medium\" align=\"right\" citation=\"Rebecca Gallardo, realtor, Intero Real Estate Services\"]‘At the end of the day, homeownership for Latinos and African Americans creates not just general generational wealth, but also contributes to the socialization of your family and creates sustainability.’[/pullquote]“In places like California, where homes are really unaffordable, it is really difficult for those with fewer financial resources to access homeownership,” she said. “Homeownership itself is creating greater wealth disparities and inequalities among those who have been able to access homeownership and those who have not, and that is likely to exacerbate over time.”\u003c/p>\n\u003cp>Many Black and Latino households also lack know-how about the buying process, according to Maria Michel-Ramirez, a Latina East Bay realtor. And even after educating potential buyers, realtors often contend with another barrier: fear. Michel-Ramirez, who owns a home in Pinole and several investment properties, said she can’t even convince her own mother to give up renting.\u003c/p>\n\u003cp>“I find that a lot of Latinos and African Americans tell me, ‘Well, if I buy a house, I’m responsible for everything. Right now, if my dishwasher breaks, I just call the landlord, or the property manager,’” she said. “They see the negative part of homeownership, not the positive part. They don’t think, like, ‘Oh, if I buy a home, I’m going to build equity. And, I can write off my property taxes and I can write off my insurance.’”\u003c/p>\n\u003cp>Michel-Ramirez recalls a couple that was paying $3,200 a month in rent. She found them a home to purchase in a better neighborhood for a total monthly payment of $3,400, including the mortgage, taxes and insurance. According to Michel-Ramirez, the couple initially balked at the higher monthly cost of $200.\u003c/p>\n\u003cp>“A lot of individuals just don’t have the education that comes with homeownership. They think it’s like a lot of money out and no money in,” she said. “A lot of Latino and African Americans come from parents who don’t own a house and have to be the first ones to make the move and that’s a little scary.”[aside label='More on Affordable Housing' tag='affordable-housing']Many Black and Latinx households just don’t have the income needed to keep up with the Bay Area’s rising home prices. In California, the median income for white households is 45% higher than Latino households and 65% higher than Black households, according to the Public Policy Institute of California.\u003c/p>\n\u003cp>Michel-Ramirez once represented a family of buyers — two parents, two grown children, a niece and nephew — who combined their incomes to qualify for a mortgage for a house in Richmond.\u003c/p>\n\u003cp>“With the incomes that many individuals have here, they have to come together and do this,” she said.\u003c/p>\n\u003cp>The median price of an existing home in the Bay Area is $1.3 million, according to the California Association of Realtors. Gallardo, the San José realtor, said the market doesn’t have inventory, especially at the low end.\u003c/p>\n\u003cp>The lack of inventory, she continued, “doesn’t affect just the first-time homebuyer, the Latino and African American community, but it affects our country as a whole because there’s just not enough inventory and not enough housing stock for every stretch of the imagination — from the homeless to the first-time home buyer to the moderate buyer.”\u003c/p>\n\u003cp>Issi Romem, a housing and real estate economist with MetroSight, an economics research company, said people who own homes tend to be more stable and engaged in their communities, but he added that renting is not inherently bad since it gives people more flexibility about where they want to live and for how long.\u003c/p>\n\u003cp>“What’s not OK is when people are forced into renting because they can’t afford to buy a home,” Romem, who also conducts research for the Terner Center for Housing Innovation at UC Berkeley, told KQED. “We want people to have both options. We don’t want their finances or, more correctly, the cost of housing as it relates to their finances, to prevent them from having access to all the good that can come with homeownership.”\u003c/p>\n\u003cp>Boosting the state’s housing inventory, especially at low price points, would make a huge difference. California gives every city housing goals at different levels of affordability, \u003ca href=\"https://www.kqed.org/news/11938267/to-meet-state-housing-goals-one-bay-area-city-had-to-overcome-its-nimby-past\">but cities rarely meet those goals, especially at the lower end of the market.\u003c/a>[pullquote size=\"medium\" align=\"right\" citation=\"Issi Romem, real estate economist, MetroSight\"]‘The most important fundamental fix is building more housing. … housing of all types, not housing geared at this population or that population. Build enough new housing, and it will keep price growth at bay.’[/pullquote]“The most important fundamental fix is building more housing,” Romem said. “That’s what matters — housing of all types, not housing geared at this population or that population. Build enough new housing, and it will keep price growth at bay.”\u003c/p>\n\u003cp>Hooks, who has deep knowledge and roots in real estate, still faces barriers to home ownership. Her father was a realtor, but her family didn’t own a home when she was growing up.\u003c/p>\n\u003cp>“I went to six different elementary schools and moved around a lot, so I understand the stability that homeownership can provide, and even tax benefits and just having something there to pass on,” she said. “But for me, it seems very difficult to do.”\u003c/p>\n\u003cp>Television shows such as \u003cem>Selling Sunset\u003c/em> on Netflix might make it seem like realtors are raking in millions in sales commissions, Hooks said. But as a single woman in her mid-30s, she said she doesn’t have enough income to buy a home on her own.\u003c/p>\n\u003cp>“I totally understand how difficult it is to scrounge up the funds for the down payment,” she said. “I have a lot of empathy for my buyers.”\u003c/p>\n\u003cp>Hooks is contemplating buying an investment property — out of state. For now, she prioritizes living in Oakland.\u003c/p>\n\u003cp>“The cost of living might be a bit more affordable elsewhere, [but] you’re going to be giving up some of that culture that you love or the nightlife or access to great restaurants and great food or proximity to nature,” she said. “So, there’s a lot to think about. And for me, I’m not sure I’m ready to make that trade yet.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"Bay Area Black and Latino households own homes at lower rates compared to statewide and across the US. These local realtors are dedicated to changing that.","status":"publish","parent":0,"modified":1693331026,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":true,"iframeSrcs":["https://datawrapper.dwcdn.net/PGYfC/5/"],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":38,"wordCount":2012},"headData":{"title":"Why Bay Area Black, Latino Residents Struggle Most to Become Homeowners | KQED","description":"Bay Area Black and Latino households own homes at lower rates compared to statewide and across the US. These local realtors are dedicated to changing that.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"excludeFromSiteSearch":"Include","articleAge":"0","path":"/news/11959201/bay-area-black-latino-residents-struggle-most-to-become-homeowners","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Montana Hooks fondly remembers a childhood filled with open houses on the weekends.\u003c/p>\n\u003cp>But the Fremont native wasn’t peering into bedrooms, living rooms and kitchens with her house-hunting family. She often found herself dashing across streets to set up signs to attract prospective buyers for her realtor father.\u003c/p>\n\u003cp>On weekday nights, he taught her to run comps, the process of using home sales data to come up with a house price. Those lessons stayed with Hooks, but she didn’t plan on following in her father’s footsteps.\u003c/p>\n\u003cp>But Hooks, 34, has spent the last few years immersing herself in real estate after leaving a career in corporate marketing.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“Real estate wasn’t something I thought I would do as an adult,” said Hooks, a realtor with eXp Realty. “I always knew, and looking back to my time with my dad, that real estate is definitely a way to create huge transformative wealth in your family if you stick with it.”\u003c/p>\n\u003cp>Selling homes is about much more than properties changing owners, Hooks said. A home gives buyers stability and the feeling of being rooted in a community.\u003c/p>\n\u003cp>Hooks, who is Black, focuses on working with first-time buyers and people of color, mostly Black or Latinx — the type of buyers who struggle the most to purchase homes in the Bay Area.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘I don’t know if I will ever be able to afford Oakland. It’s like the hairdresser whose hair is always messy or the chef who eats macaroni and cheese at home.’","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Montana Hooks, realtor, eXp Realty","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>When she’s not working directly with clients, she writes articles to help buyers understand the home-buying process. A couple of years ago, she launched \u003ca href=\"https://www.bayareablackrealtors.com/\">bayareablackrealtors.com\u003c/a>, a website that matches Black buyers with agents.\u003c/p>\n\u003cp>In 2020, nationwide, just \u003ca href=\"https://datausa.io/profile/soc/real-estate-brokers-sales-agents?ethnicity-gender=genderAllE&races-filter=shareR\">6% of realtors and real estate agents identified as Black while 11% identified as Hispanic.\u003c/a>\u003c/p>\n\u003cp>“I can’t even tell you how infrequently I see another Black listing agent,” Hooks said. “And I can’t tell you how many times I’ve been looked at with a side-eye when I show up to sell a home, even in Oakland.”\u003c/p>\n\u003cp>She continued: “The more people of color that work in real estate on any of these sides of the transactions, the less inequity that buyers of color will feel when they’re going through the buying process or when they’re trying to sell their home.”\u003c/p>\n\u003cp>While Hooks is dedicated to selling homes to people of color, she has yet to buy one for herself.\u003c/p>\n\u003cp>“I don’t know if I will ever be able to afford Oakland,” she said. “It’s like the hairdresser whose hair is always messy or the chef who eats macaroni and cheese at home.”\u003c/p>\n\u003cp>Homeownership is the most common pathway to build wealth in the U.S., but the cost of owning a home is increasingly out of reach for first-time buyers. In August, the average 30-year mortgage rate reached the highest level — 7.23% — in more than two decades, according to mortgage buyer Freddie Mac. High interest rates and low inventory have combined to create a daunting atmosphere for people looking for their starter home.\u003c/p>\n\u003cp>Hooks’ experience underscores a paradox many would-be Latinx and Black buyers face: Not coming from generational wealth makes it harder to accumulate wealth. From 2011 to 2021, Black homeownership in the Bay Area ranged between 29% and 33%, according to U.S. Census data. For Latinos, the rate ranged between 35% and 39%. At around 60%, both white and Asian households, have the highest homeownership rates in the Bay Area.\u003c/p>\n\u003cp>Both Latino and Black households in the Bay Area own homes at lower rates than they do statewide or \u003ca href=\"https://www.jchs.harvard.edu/blog/nearly-every-state-people-color-are-less-likely-own-homes-compared-white-households#:~:text=However%2C%20the%20racial%20homeownership%20gap,points%20lower%20than%20white%20households.\">across the country.\u003c/a> More often than not, clients come to Hooks excited to shop for a house only to find that they don’t qualify for a mortgage, can’t afford the location they want or simply can’t find any houses in their price ranges.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" title=\"Bay Area Homeownership Rates by Race\" aria-label=\"Interactive line chart\" id=\"datawrapper-chart-PGYfC\" src=\"https://datawrapper.dwcdn.net/PGYfC/5/\" scrolling=\"no\" frameborder=\"0\" style=\"border: none;\" width=\"1000\" height=\"600\" data-external=\"1\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>The Black and Latinx rates are low, but it’s not because they don’t want to own homes, according to Rebecca Gallardo, a Latina realtor in San José for more than 30 years.\u003c/p>\n\u003cp>“At the end of the day, homeownership for Latinos and African Americans creates not just general generational wealth, but also contributes to the socialization of your family and creates sustainability,” said Gallardo, a former board member for the National Association of Hispanic Real Estate Professionals.\u003c/p>\n\u003cp>In California, more than half of all households — 54.4% — own homes, but Blacks and Latinos are the only demographic groups that have homeowner rates under 50% at 34.5% and 43.2%, respectively. The trend is related to the unaffordable market, according to Jung Hyun Choi, a senior research associate with the Housing Finance Policy Center at the Urban Institute, a think tank focused on economic and social equity.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘At the end of the day, homeownership for Latinos and African Americans creates not just general generational wealth, but also contributes to the socialization of your family and creates sustainability.’","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Rebecca Gallardo, realtor, Intero Real Estate Services","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>“In places like California, where homes are really unaffordable, it is really difficult for those with fewer financial resources to access homeownership,” she said. “Homeownership itself is creating greater wealth disparities and inequalities among those who have been able to access homeownership and those who have not, and that is likely to exacerbate over time.”\u003c/p>\n\u003cp>Many Black and Latino households also lack know-how about the buying process, according to Maria Michel-Ramirez, a Latina East Bay realtor. And even after educating potential buyers, realtors often contend with another barrier: fear. Michel-Ramirez, who owns a home in Pinole and several investment properties, said she can’t even convince her own mother to give up renting.\u003c/p>\n\u003cp>“I find that a lot of Latinos and African Americans tell me, ‘Well, if I buy a house, I’m responsible for everything. Right now, if my dishwasher breaks, I just call the landlord, or the property manager,’” she said. “They see the negative part of homeownership, not the positive part. They don’t think, like, ‘Oh, if I buy a home, I’m going to build equity. And, I can write off my property taxes and I can write off my insurance.’”\u003c/p>\n\u003cp>Michel-Ramirez recalls a couple that was paying $3,200 a month in rent. She found them a home to purchase in a better neighborhood for a total monthly payment of $3,400, including the mortgage, taxes and insurance. According to Michel-Ramirez, the couple initially balked at the higher monthly cost of $200.\u003c/p>\n\u003cp>“A lot of individuals just don’t have the education that comes with homeownership. They think it’s like a lot of money out and no money in,” she said. “A lot of Latino and African Americans come from parents who don’t own a house and have to be the first ones to make the move and that’s a little scary.”\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"More on Affordable Housing ","tag":"affordable-housing"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Many Black and Latinx households just don’t have the income needed to keep up with the Bay Area’s rising home prices. In California, the median income for white households is 45% higher than Latino households and 65% higher than Black households, according to the Public Policy Institute of California.\u003c/p>\n\u003cp>Michel-Ramirez once represented a family of buyers — two parents, two grown children, a niece and nephew — who combined their incomes to qualify for a mortgage for a house in Richmond.\u003c/p>\n\u003cp>“With the incomes that many individuals have here, they have to come together and do this,” she said.\u003c/p>\n\u003cp>The median price of an existing home in the Bay Area is $1.3 million, according to the California Association of Realtors. Gallardo, the San José realtor, said the market doesn’t have inventory, especially at the low end.\u003c/p>\n\u003cp>The lack of inventory, she continued, “doesn’t affect just the first-time homebuyer, the Latino and African American community, but it affects our country as a whole because there’s just not enough inventory and not enough housing stock for every stretch of the imagination — from the homeless to the first-time home buyer to the moderate buyer.”\u003c/p>\n\u003cp>Issi Romem, a housing and real estate economist with MetroSight, an economics research company, said people who own homes tend to be more stable and engaged in their communities, but he added that renting is not inherently bad since it gives people more flexibility about where they want to live and for how long.\u003c/p>\n\u003cp>“What’s not OK is when people are forced into renting because they can’t afford to buy a home,” Romem, who also conducts research for the Terner Center for Housing Innovation at UC Berkeley, told KQED. “We want people to have both options. We don’t want their finances or, more correctly, the cost of housing as it relates to their finances, to prevent them from having access to all the good that can come with homeownership.”\u003c/p>\n\u003cp>Boosting the state’s housing inventory, especially at low price points, would make a huge difference. California gives every city housing goals at different levels of affordability, \u003ca href=\"https://www.kqed.org/news/11938267/to-meet-state-housing-goals-one-bay-area-city-had-to-overcome-its-nimby-past\">but cities rarely meet those goals, especially at the lower end of the market.\u003c/a>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘The most important fundamental fix is building more housing. … housing of all types, not housing geared at this population or that population. Build enough new housing, and it will keep price growth at bay.’","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Issi Romem, real estate economist, MetroSight","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>“The most important fundamental fix is building more housing,” Romem said. “That’s what matters — housing of all types, not housing geared at this population or that population. Build enough new housing, and it will keep price growth at bay.”\u003c/p>\n\u003cp>Hooks, who has deep knowledge and roots in real estate, still faces barriers to home ownership. Her father was a realtor, but her family didn’t own a home when she was growing up.\u003c/p>\n\u003cp>“I went to six different elementary schools and moved around a lot, so I understand the stability that homeownership can provide, and even tax benefits and just having something there to pass on,” she said. “But for me, it seems very difficult to do.”\u003c/p>\n\u003cp>Television shows such as \u003cem>Selling Sunset\u003c/em> on Netflix might make it seem like realtors are raking in millions in sales commissions, Hooks said. But as a single woman in her mid-30s, she said she doesn’t have enough income to buy a home on her own.\u003c/p>\n\u003cp>“I totally understand how difficult it is to scrounge up the funds for the down payment,” she said. “I have a lot of empathy for my buyers.”\u003c/p>\n\u003cp>Hooks is contemplating buying an investment property — out of state. For now, she prioritizes living in Oakland.\u003c/p>\n\u003cp>“The cost of living might be a bit more affordable elsewhere, [but] you’re going to be giving up some of that culture that you love or the nightlife or access to great restaurants and great food or proximity to nature,” she said. “So, there’s a lot to think about. And for me, I’m not sure I’m ready to make that trade yet.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11959201/bay-area-black-latino-residents-struggle-most-to-become-homeowners","authors":["11666"],"categories":["news_6266","news_8"],"tags":["news_3921","news_28272","news_18538","news_27626","news_4401","news_1775","news_30796","news_20605","news_25409","news_137","news_5080"],"featImg":"news_11953159","label":"news"},"news_11945929":{"type":"posts","id":"news_11945929","meta":{"index":"posts_1591205157","site":"news","id":"11945929","score":null,"sort":[1680821807000]},"guestAuthors":[],"slug":"treasure-island-redevelopment-plans-uncertain-as-bay-area-real-estate-companies-sue-each-other","title":"Treasure Island Redevelopment Plans Uncertain as Bay Area Real Estate Companies Sue Each Other","publishDate":1680821807,"format":"standard","headTitle":"Treasure Island Redevelopment Plans Uncertain as Bay Area Real Estate Companies Sue Each Other | KQED","labelTerm":{"site":"news"},"content":"\u003cp>Three real estate companies overseeing the revitalization of San Francisco’s Treasure Island are now suing each other over their expected returns on the former naval base project.\u003c/p>\n\u003cp>It’s unclear whether the infighting will delay what’s slated to be the largest single housing development in Northern California. The massive, multiyear effort to transform Treasure Island into a dense neighborhood includes a mix of retail space, parks, transportation services and new housing totaling about 8,000 units.\u003c/p>\n\u003cp>“This could definitely throw a stone into the gears and bring development to a halt,” said Sam Singer, a spokesperson representing Kenwood Investments, one of the real estate companies in the dispute.\u003c/p>\n\u003cp>[aside postID=news_11790693 hero='https://ww2.kqed.org/app/uploads/sites/10/2019/12/RS40411_SFPL-TI-Construction-partially-built-island-AAD-3782_600dpi-qut-1038x576.jpg']\u003c/p>\n\u003cp>Two real estate companies, Stockbridge Investments and Wilson Meany, filed a lawsuit last weekend against the third developer, Kenwood Investments, claiming the lengthy development timeline for Treasure Island will diminish their anticipated profits.\u003c/p>\n\u003cp>Kenwood on Tuesday filed a counter lawsuit, alleging that Stockbridge and Wilson Meany are conspiring to breach a contract among the three groups and steal profits.\u003c/p>\n\u003cp>“Stockbridge and WM tried to keep Kenwood in the dark on their plans,” the complaint from Kenwood reads. “Stockbridge and WM’s actions place the entire Treasure Island project at risk and leave Kenwood with no option but to protect its interest.”\u003c/p>\n\u003cp>Stockbridge representatives denied that the dispute would further delay constriction. The Treasure Island Development Authority did not immediately return a request for comment.\u003c/p>\n\u003cp>“Work is continuing at Treasure Island. This is a dispute between members of KSWM, an entity that, along with a Stockbridge affiliate, owns half of the Treasure Island venture,” a spokesperson for Stockbridge wrote to KQED. “The dispute involves the distribution and allocation of any future profits from the venture. We expect to resolve it without any impact on the development.’’\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>In 2001, Kenwood entered an agreement with real estate company Lennar Urban to redevelop Treasure Island, a 400-acre island situated between the East Bay and San Francisco. Kenwood and Lennar held a 50% interest in the Treasure Island Community Development (TICD) project, the Kenwood complaint reads.\u003c/p>\n\u003cp>Four years later, Stockbridge and Wilson Meany joined Kenwood as partners, and the groups formed a company called KSWM Treasure Island. As part of that partnership, Kenwood claims it transferred its 50% share to the KSWM group.\u003c/p>\n\u003cfigure id=\"attachment_11945938\" class=\"wp-caption aligncenter\" style=\"max-width: 1000px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-11945938\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS7294_Google_Barge_web_3.jpg\" alt=\"A housing structure is seen being built on an island with a view of a silver bridge in the background.\" width=\"1000\" height=\"667\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS7294_Google_Barge_web_3.jpg 1000w, https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS7294_Google_Barge_web_3-800x534.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS7294_Google_Barge_web_3-160x107.jpg 160w\" sizes=\"(max-width: 1000px) 100vw, 1000px\">\u003cfigcaption class=\"wp-caption-text\">A structure sits on the water off Treasure Island, across from the Bay Bridge. \u003ccite>(Sara Bloomberg/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Then in 2016, a separate investor and affiliate of Stockbridge, Stockbridge TI, joined TICD. As a result, KSWM and Stockbridge TI then shared the 50% interest. Kenwood claims in its lawsuit that Wilson Meany and Stockbridge “never requested Kenwood’s consent to this amendment and Kenwood did not agree to this amendment.”\u003c/p>\n\u003cp>Kenwood is now alleging that by allowing Stockbridge TI to invest directly into TICD, the partners “diluted” the 50% share for KSWM. Stockbridge and Wilson Meany deny both claims.\u003c/p>\n\u003cp>In their original complaint, Stockbridge and Wilson Meany assert that the projected values of KSWM’s interests are “much lower today than they were a few years ago, before the COVID pandemic and economic shocks that came in its wake, and before unanticipated cost increases and delays pushed out the reduced projected revenues by several years, all of which have depressed expected returns,” the document reads. “Because of these setbacks, none of KSWM’s members can look forward to the financial rewards they had hoped for when this project started in the early 2000s.”\u003c/p>\n\u003cfigure id=\"attachment_11945939\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-11945939\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS35226_TREASUREISLAND_003-qut-1.jpg\" alt=\"Cranes and other building equipment are seen parked on wet ground. Trees and powerlines are also pictured in the background under gray skies.\" width=\"1920\" height=\"1323\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS35226_TREASUREISLAND_003-qut-1.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS35226_TREASUREISLAND_003-qut-1-800x551.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS35226_TREASUREISLAND_003-qut-1-1020x703.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS35226_TREASUREISLAND_003-qut-1-160x110.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS35226_TREASUREISLAND_003-qut-1-1536x1058.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Bulldozers and other construction equipment are locked away on Treasure Island on Friday, Feb. 8, 2019. \u003ccite>(Lindsey Moore/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Treasure Island represents both a massive opportunity and challenge for developers. Unlike many parts of the city, the former naval base has tremendous space for new developments and housing, which is sorely needed to address the region’s housing crunch. But the former military site has a history spotted with environmental lawsuits, permitting hurdles and other barriers.\u003c/p>\n\u003cp>The most recent project to break ground was Star View Court, a 138-unit development that includes 71 units for formerly unhoused families transitioning out of interim supportive housing, 43 units for lower-income households, and 23 homes for current Treasure Island residents.\u003c/p>\n\u003cp>[aside label='More Stories on Housing' tag='housing']\u003c/p>\n\u003cp>About 27% of the homes and apartments slated for the Treasure Island/Yerba Buena Island Development Project, which the San Francisco Board of Supervisors approved in 2011, are earmarked to be affordable.\u003c/p>\n\u003cp>“On Treasure Island we have an incredible opportunity to create a whole new neighborhood that serves all San Franciscans,” Mayor London Breed said in 2022 when the Star View Court project was announced. “As we do that work, it’s essential that we have affordable places for people to live that also provide housing for the existing residents of this community.”\u003c/p>\n\u003cp>Supervisor Matt Dorsey and Assemblymember Matt Haney, whose districts include Treasure Island, did not immediately respond to requests for comment.\u003c/p>\n\u003cp>\u003ci data-stringify-type=\"italic\">This story has been updated to include a statement from a Stockbridge Investments spokesperson.\u003c/i>\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"'This could definitely throw a stone into the gears and bring development to a halt,' said Sam Singer, spokesperson for one of the real estate companies. ","status":"publish","parent":0,"modified":1680905777,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":23,"wordCount":884},"headData":{"title":"Treasure Island Redevelopment Plans Uncertain as Bay Area Real Estate Companies Sue Each Other | KQED","description":"'This could definitely throw a stone into the gears and bring development to a halt,' said Sam Singer, spokesperson for one of the real estate companies. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"excludeFromSiteSearch":"Include","articleAge":"0","path":"/news/11945929/treasure-island-redevelopment-plans-uncertain-as-bay-area-real-estate-companies-sue-each-other","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Three real estate companies overseeing the revitalization of San Francisco’s Treasure Island are now suing each other over their expected returns on the former naval base project.\u003c/p>\n\u003cp>It’s unclear whether the infighting will delay what’s slated to be the largest single housing development in Northern California. The massive, multiyear effort to transform Treasure Island into a dense neighborhood includes a mix of retail space, parks, transportation services and new housing totaling about 8,000 units.\u003c/p>\n\u003cp>“This could definitely throw a stone into the gears and bring development to a halt,” said Sam Singer, a spokesperson representing Kenwood Investments, one of the real estate companies in the dispute.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11790693","hero":"https://ww2.kqed.org/app/uploads/sites/10/2019/12/RS40411_SFPL-TI-Construction-partially-built-island-AAD-3782_600dpi-qut-1038x576.jpg","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Two real estate companies, Stockbridge Investments and Wilson Meany, filed a lawsuit last weekend against the third developer, Kenwood Investments, claiming the lengthy development timeline for Treasure Island will diminish their anticipated profits.\u003c/p>\n\u003cp>Kenwood on Tuesday filed a counter lawsuit, alleging that Stockbridge and Wilson Meany are conspiring to breach a contract among the three groups and steal profits.\u003c/p>\n\u003cp>“Stockbridge and WM tried to keep Kenwood in the dark on their plans,” the complaint from Kenwood reads. “Stockbridge and WM’s actions place the entire Treasure Island project at risk and leave Kenwood with no option but to protect its interest.”\u003c/p>\n\u003cp>Stockbridge representatives denied that the dispute would further delay constriction. The Treasure Island Development Authority did not immediately return a request for comment.\u003c/p>\n\u003cp>“Work is continuing at Treasure Island. This is a dispute between members of KSWM, an entity that, along with a Stockbridge affiliate, owns half of the Treasure Island venture,” a spokesperson for Stockbridge wrote to KQED. “The dispute involves the distribution and allocation of any future profits from the venture. We expect to resolve it without any impact on the development.’’\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>In 2001, Kenwood entered an agreement with real estate company Lennar Urban to redevelop Treasure Island, a 400-acre island situated between the East Bay and San Francisco. Kenwood and Lennar held a 50% interest in the Treasure Island Community Development (TICD) project, the Kenwood complaint reads.\u003c/p>\n\u003cp>Four years later, Stockbridge and Wilson Meany joined Kenwood as partners, and the groups formed a company called KSWM Treasure Island. As part of that partnership, Kenwood claims it transferred its 50% share to the KSWM group.\u003c/p>\n\u003cfigure id=\"attachment_11945938\" class=\"wp-caption aligncenter\" style=\"max-width: 1000px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-11945938\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS7294_Google_Barge_web_3.jpg\" alt=\"A housing structure is seen being built on an island with a view of a silver bridge in the background.\" width=\"1000\" height=\"667\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS7294_Google_Barge_web_3.jpg 1000w, https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS7294_Google_Barge_web_3-800x534.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS7294_Google_Barge_web_3-160x107.jpg 160w\" sizes=\"(max-width: 1000px) 100vw, 1000px\">\u003cfigcaption class=\"wp-caption-text\">A structure sits on the water off Treasure Island, across from the Bay Bridge. \u003ccite>(Sara Bloomberg/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Then in 2016, a separate investor and affiliate of Stockbridge, Stockbridge TI, joined TICD. As a result, KSWM and Stockbridge TI then shared the 50% interest. Kenwood claims in its lawsuit that Wilson Meany and Stockbridge “never requested Kenwood’s consent to this amendment and Kenwood did not agree to this amendment.”\u003c/p>\n\u003cp>Kenwood is now alleging that by allowing Stockbridge TI to invest directly into TICD, the partners “diluted” the 50% share for KSWM. Stockbridge and Wilson Meany deny both claims.\u003c/p>\n\u003cp>In their original complaint, Stockbridge and Wilson Meany assert that the projected values of KSWM’s interests are “much lower today than they were a few years ago, before the COVID pandemic and economic shocks that came in its wake, and before unanticipated cost increases and delays pushed out the reduced projected revenues by several years, all of which have depressed expected returns,” the document reads. “Because of these setbacks, none of KSWM’s members can look forward to the financial rewards they had hoped for when this project started in the early 2000s.”\u003c/p>\n\u003cfigure id=\"attachment_11945939\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-11945939\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS35226_TREASUREISLAND_003-qut-1.jpg\" alt=\"Cranes and other building equipment are seen parked on wet ground. Trees and powerlines are also pictured in the background under gray skies.\" width=\"1920\" height=\"1323\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS35226_TREASUREISLAND_003-qut-1.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS35226_TREASUREISLAND_003-qut-1-800x551.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS35226_TREASUREISLAND_003-qut-1-1020x703.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS35226_TREASUREISLAND_003-qut-1-160x110.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2023/04/RS35226_TREASUREISLAND_003-qut-1-1536x1058.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Bulldozers and other construction equipment are locked away on Treasure Island on Friday, Feb. 8, 2019. \u003ccite>(Lindsey Moore/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Treasure Island represents both a massive opportunity and challenge for developers. Unlike many parts of the city, the former naval base has tremendous space for new developments and housing, which is sorely needed to address the region’s housing crunch. But the former military site has a history spotted with environmental lawsuits, permitting hurdles and other barriers.\u003c/p>\n\u003cp>The most recent project to break ground was Star View Court, a 138-unit development that includes 71 units for formerly unhoused families transitioning out of interim supportive housing, 43 units for lower-income households, and 23 homes for current Treasure Island residents.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"More Stories on Housing ","tag":"housing"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>About 27% of the homes and apartments slated for the Treasure Island/Yerba Buena Island Development Project, which the San Francisco Board of Supervisors approved in 2011, are earmarked to be affordable.\u003c/p>\n\u003cp>“On Treasure Island we have an incredible opportunity to create a whole new neighborhood that serves all San Franciscans,” Mayor London Breed said in 2022 when the Star View Court project was announced. “As we do that work, it’s essential that we have affordable places for people to live that also provide housing for the existing residents of this community.”\u003c/p>\n\u003cp>Supervisor Matt Dorsey and Assemblymember Matt Haney, whose districts include Treasure Island, did not immediately respond to requests for comment.\u003c/p>\n\u003cp>\u003ci data-stringify-type=\"italic\">This story has been updated to include a statement from a Stockbridge Investments spokesperson.\u003c/i>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11945929/treasure-island-redevelopment-plans-uncertain-as-bay-area-real-estate-companies-sue-each-other","authors":["11840","11652"],"categories":["news_6266","news_8"],"tags":["news_21863","news_1775","news_21891","news_137","news_24616","news_38","news_1279"],"featImg":"news_11945937","label":"news"},"news_11929833":{"type":"posts","id":"news_11929833","meta":{"index":"posts_1591205157","site":"news","id":"11929833","score":null,"sort":[1666402080000]},"guestAuthors":[],"slug":"california-realtors-apologize-for-role-in-racist-housing","title":"California Realtors Apologize for Role in Racist Housing Policies","publishDate":1666402080,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>The California Association of Realtors is apologizing for its role in pushing policies that drove racial segregation in the state, decades after the group put its money behind \u003ca href=\"https://www.latimes.com/politics/la-pol-ca-affordable-housing-constitution-20190203-story.html\">a proposition that overturned the state’s first fair housing law\u003c/a>.\u003c/p>\n\u003cp>During a press conference Friday, leaders of multiple real estate organizations spoke about their next steps, following the association's apology last week. The realtors' group is \u003ca href=\"https://www.kqed.org/news/11907336/lawmakers-push-to-repeal-anti-black-housing-law-in-california-constitution\">now backing a bill that would overturn a law that makes it harder for the state to build affordable housing\u003c/a>. The group is partnering with nonprofits focused on expanding homeownership among communities of color. It also pushed for a law requiring implicit-bias training for real estate agents.\u003c/p>\n\u003cp>“This has been a very long time coming,” said Derrick Luckett, chair of the National Association of Real Estate Brokers, an association that has expressed a commitment to expanding intergenerational wealth among Black households.\u003c/p>\n\u003cp>The California Association of Realtors was one of many real estate groups that supported redlining, barriers to affordable housing projects, and other practices of the 20th century that led to more segregated cities across the United States.\u003c/p>\n\u003cp>During the 1930s, the Home Owners’ Loan Corporation, backed by the federal government, created maps that categorized parts of cities into grades based on their purported creditworthiness. The practice, now known as redlining, drove racial segregation and income inequality by preventing residents living in certain neighborhoods from receiving loans.[pullquote size=\"medium\" align=\"right\" citation=\"Matt Lewis, spokesperson, California YIMBY\"]'An apology is always backward-looking, so it's important to try to correct the damage you did. But the next step is, so what are you going to do about it?'[/pullquote]The California Association of Realtors, then known as the California Real Estate Association, paid for a campaign to add an amendment to the state constitution in 1950 forcing the government to get voter approval before spending public money on affordable housing. In more recent decades, the group has supported repealing the amendment.\u003c/p>\n\u003cp>In 1964, the association put its money behind \u003ca href=\"https://www.latimes.com/opinion/story/2020-10-21/prop-14-ronald-reagan-la-times-vote-segregation-californias-constitution\">a proposition to invalidate the Rumford Act\u003c/a>, a law aimed at protecting people of color from discrimination while they were searching for a home.\u003c/p>\n\u003cp>In 2020, following the killings of George Floyd, Breonna Taylor and Ahmaud Arbery, which led to global demonstrations against racism and police violence, the National Association of Realtors apologized for its role in housing discrimination. Real estate groups in cities including St. Louis and Minneapolis have recently followed suit.\u003c/p>\n\u003cp>Otto Catrina, president of the California Association of Realtors, said Friday that its apology follows one by the group's former president in its magazine last year. But this apology is more formal, since it's gone through the approval of the association's board.\u003c/p>\n\u003cp>“For many of our members, this apology reflects the organization that we are today and are continuing to work to foster inclusion and belonging for all our members and our communities,” Catrina said.\u003c/p>\n\u003cp>The National Association of Realtors reports that the homeownership rate for Black Americans is 43% compared to 72% for white Americans. Black homeowners also have reported that the value of their home appraisals increases when they strip away any sign of a Black family living there.\u003c/p>\n\u003cfigure id=\"attachment_11929845\" class=\"wp-caption alignright\" style=\"max-width: 614px\">\u003cimg class=\"size-full wp-image-11929845\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/10/RS29302_Oakland-Area-Map-D15-ad0122-qut.jpg\" alt=\"The image of a document from the 1930s.\" width=\"614\" height=\"1008\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/10/RS29302_Oakland-Area-Map-D15-ad0122-qut.jpg 614w, https://ww2.kqed.org/app/uploads/sites/10/2022/10/RS29302_Oakland-Area-Map-D15-ad0122-qut-160x263.jpg 160w\" sizes=\"(max-width: 614px) 100vw, 614px\">\u003cfigcaption class=\"wp-caption-text\">A 1937 Oakland area description from the Home Owners' Loan Corporation. Among the 'detrimental influences' listed in the document are 'predominance of foreign elements' and 'infiltration by Negroes and Orientals.' \u003ccite>(Courtesy of University of Maryland's T-Races project)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Eli Knaap, associate director of San Diego State University's Center for Open Geographical Science, said the apology comes when there's overwhelming evidence that the legacy of discriminatory housing policies hinders families' ability to build wealth.\u003c/p>\n\u003cp>“The greatest source of wealth for most families is in their home,” he said.\u003c/p>\n\u003cp>Knaap, who's studied the lasting impacts of practices like redlining that drove racial segregation, said some local governments now implement what's known as inclusionary zoning where a portion of units in a residential development need to be affordable for lower-income residents.\u003c/p>\n\u003cp>In June, California's first-in-the-nation reparations task force released an exhaustive report that listed housing segregation as one of the many harms Black Californians faced long after the abolition of slavery. As the task force deliberates on what form reparations could take, economists are working to put dollar figures on the lasting impacts of these harms.\u003c/p>\n\u003cp>The California Association of Realtors hasn't taken an official stance on reparations but will review policy recommendations made by the task force, Catrina said Friday.\u003c/p>\n\u003cp>Matt Lewis, spokesperson for housing advocacy group California YIMBY, said it's important for the realtors' association to be clear about what steps it will take to address the lingering effects of discriminatory policies it supported.\u003c/p>\n\u003cp>“An apology is always backward-looking, so it’s important to try to correct the damage you did,\" Lewis said. \"But the next step is, so what are you going to do about it?”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"Redlining drove racial segregation in many cities across the US, with some Black homeowners still reporting that the value of their house went up after erasing any sign that a Black family lives there.","status":"publish","parent":0,"modified":1667330867,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":19,"wordCount":837},"headData":{"title":"California Realtors Apologize for Role in Racist Housing Policies | KQED","description":"Redlining drove racial segregation in many cities across the US, with some Black homeowners still reporting that the value of their house went up after erasing any sign that a Black family lives there.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"11929833 https://ww2.kqed.org/news/?p=11929833","disqusUrl":"https://ww2.kqed.org/news/2022/10/21/california-realtors-apologize-for-role-in-racist-housing/","disqusTitle":"California Realtors Apologize for Role in Racist Housing Policies","nprByline":"\u003ca href=\"https://twitter.com/sophieadanna\">Sophie Austin\u003c/a>, Associated Press","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","path":"/news/11929833/california-realtors-apologize-for-role-in-racist-housing","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>The California Association of Realtors is apologizing for its role in pushing policies that drove racial segregation in the state, decades after the group put its money behind \u003ca href=\"https://www.latimes.com/politics/la-pol-ca-affordable-housing-constitution-20190203-story.html\">a proposition that overturned the state’s first fair housing law\u003c/a>.\u003c/p>\n\u003cp>During a press conference Friday, leaders of multiple real estate organizations spoke about their next steps, following the association's apology last week. The realtors' group is \u003ca href=\"https://www.kqed.org/news/11907336/lawmakers-push-to-repeal-anti-black-housing-law-in-california-constitution\">now backing a bill that would overturn a law that makes it harder for the state to build affordable housing\u003c/a>. The group is partnering with nonprofits focused on expanding homeownership among communities of color. It also pushed for a law requiring implicit-bias training for real estate agents.\u003c/p>\n\u003cp>“This has been a very long time coming,” said Derrick Luckett, chair of the National Association of Real Estate Brokers, an association that has expressed a commitment to expanding intergenerational wealth among Black households.\u003c/p>\n\u003cp>The California Association of Realtors was one of many real estate groups that supported redlining, barriers to affordable housing projects, and other practices of the 20th century that led to more segregated cities across the United States.\u003c/p>\n\u003cp>During the 1930s, the Home Owners’ Loan Corporation, backed by the federal government, created maps that categorized parts of cities into grades based on their purported creditworthiness. The practice, now known as redlining, drove racial segregation and income inequality by preventing residents living in certain neighborhoods from receiving loans.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'An apology is always backward-looking, so it's important to try to correct the damage you did. But the next step is, so what are you going to do about it?'","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Matt Lewis, spokesperson, California YIMBY","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>The California Association of Realtors, then known as the California Real Estate Association, paid for a campaign to add an amendment to the state constitution in 1950 forcing the government to get voter approval before spending public money on affordable housing. In more recent decades, the group has supported repealing the amendment.\u003c/p>\n\u003cp>In 1964, the association put its money behind \u003ca href=\"https://www.latimes.com/opinion/story/2020-10-21/prop-14-ronald-reagan-la-times-vote-segregation-californias-constitution\">a proposition to invalidate the Rumford Act\u003c/a>, a law aimed at protecting people of color from discrimination while they were searching for a home.\u003c/p>\n\u003cp>In 2020, following the killings of George Floyd, Breonna Taylor and Ahmaud Arbery, which led to global demonstrations against racism and police violence, the National Association of Realtors apologized for its role in housing discrimination. Real estate groups in cities including St. Louis and Minneapolis have recently followed suit.\u003c/p>\n\u003cp>Otto Catrina, president of the California Association of Realtors, said Friday that its apology follows one by the group's former president in its magazine last year. But this apology is more formal, since it's gone through the approval of the association's board.\u003c/p>\n\u003cp>“For many of our members, this apology reflects the organization that we are today and are continuing to work to foster inclusion and belonging for all our members and our communities,” Catrina said.\u003c/p>\n\u003cp>The National Association of Realtors reports that the homeownership rate for Black Americans is 43% compared to 72% for white Americans. Black homeowners also have reported that the value of their home appraisals increases when they strip away any sign of a Black family living there.\u003c/p>\n\u003cfigure id=\"attachment_11929845\" class=\"wp-caption alignright\" style=\"max-width: 614px\">\u003cimg class=\"size-full wp-image-11929845\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/10/RS29302_Oakland-Area-Map-D15-ad0122-qut.jpg\" alt=\"The image of a document from the 1930s.\" width=\"614\" height=\"1008\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/10/RS29302_Oakland-Area-Map-D15-ad0122-qut.jpg 614w, https://ww2.kqed.org/app/uploads/sites/10/2022/10/RS29302_Oakland-Area-Map-D15-ad0122-qut-160x263.jpg 160w\" sizes=\"(max-width: 614px) 100vw, 614px\">\u003cfigcaption class=\"wp-caption-text\">A 1937 Oakland area description from the Home Owners' Loan Corporation. Among the 'detrimental influences' listed in the document are 'predominance of foreign elements' and 'infiltration by Negroes and Orientals.' \u003ccite>(Courtesy of University of Maryland's T-Races project)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Eli Knaap, associate director of San Diego State University's Center for Open Geographical Science, said the apology comes when there's overwhelming evidence that the legacy of discriminatory housing policies hinders families' ability to build wealth.\u003c/p>\n\u003cp>“The greatest source of wealth for most families is in their home,” he said.\u003c/p>\n\u003cp>Knaap, who's studied the lasting impacts of practices like redlining that drove racial segregation, said some local governments now implement what's known as inclusionary zoning where a portion of units in a residential development need to be affordable for lower-income residents.\u003c/p>\n\u003cp>In June, California's first-in-the-nation reparations task force released an exhaustive report that listed housing segregation as one of the many harms Black Californians faced long after the abolition of slavery. As the task force deliberates on what form reparations could take, economists are working to put dollar figures on the lasting impacts of these harms.\u003c/p>\n\u003cp>The California Association of Realtors hasn't taken an official stance on reparations but will review policy recommendations made by the task force, Catrina said Friday.\u003c/p>\n\u003cp>Matt Lewis, spokesperson for housing advocacy group California YIMBY, said it's important for the realtors' association to be clear about what steps it will take to address the lingering effects of discriminatory policies it supported.\u003c/p>\n\u003cp>“An apology is always backward-looking, so it’s important to try to correct the damage you did,\" Lewis said. \"But the next step is, so what are you going to do about it?”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11929833/california-realtors-apologize-for-role-in-racist-housing","authors":["byline_news_11929833"],"categories":["news_1758","news_8"],"tags":["news_28792","news_137","news_31884","news_21028"],"featImg":"news_11929843","label":"news"},"news_11898493":{"type":"posts","id":"news_11898493","meta":{"index":"posts_1591205157","site":"news","id":"11898493","score":null,"sort":[1639017229000]},"guestAuthors":[],"slug":"real-estate-investor-at-center-of-oaklands-moms-4-housing-standoff-fined-3-5-million-for-unlawful-evictions","title":"Real Estate Investor at Center of Oakland's 'Moms 4 Housing' Standoff Hit by State With $3.5 Million Penalty for Unlawful Evictions","publishDate":1639017229,"format":"quote","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>California Attorney General Rob Bonta on Wednesday announced a $3.5 million judgment against real estate investment firm Wedgewood — known for its 2019 standoff with Oakland activist group Moms 4 Housing — over accusations it unlawfully evicted tenants from foreclosed houses.\u003c/p>\n\u003cp>The Redondo Beach-based company, which describes itself as an \"acquirer of distressed residential real estate,\" allegedly used a variety of illegal tactics to push out existing tenants in order to quickly fix up and resell — or \"flip\" — the properties for profit.[pullquote size=\"medium\" align=\"right\" citation=\"California Attorney General Rob Bonta\"]'Even amid this housing crisis, there are some who pursue profits over the interest of families and, worse, profits over the law.’[/pullquote]\"Unfortunately, for too many Californians, their home has been ripped away from them, while others live on the precipice of eviction,\" Bonta said at Wednesday's press briefing, underscoring the importance of housing laws and tenant protections. \"But even amid this crisis, there are some who pursue profits over the interest of families and, worse, profits over the law.\"\u003c/p>\n\u003cp>As the property owner, Bonta said, Wedgewood deprived tenants of their legal right to continue living in their homes under preexisting leases for at least 90 days after foreclosure. The company's alleged tactics included evicting tenants without just cause in rent-controlled jurisdictions, filing false declarations to support unlawful evictions and failing to provide essential utility services to tenants, he said.\u003c/p>\n\u003cp>\"When you break the law, you will be held to account. There will be consequences,\" said Bonta, touting his office's recent housing initiatives.\u003c/p>\n\u003cp>Wedgewood drew national attention in 2019 when \u003ca href=\"https://www.kqed.org/news/11793299/moms-4-housing-in-oakland-vow-to-fight-potential-eviction\">activist group Moms 4 Housing\u003c/a> occupied a then-vacant house in West Oakland and remained there for several months before being forced out in a court-ordered eviction. The firm eventually \u003ca href=\"https://www.kqed.org/news/11797001/moms-4-housing-group-reaches-agreement-to-buy-vacant-house\">sold the property to a community land trust\u003c/a>, which offered some of the activists involved access to the property.\u003c/p>\n\u003cp>Although Bonta noted that Wedgewood, under certain conditions, is legally entitled to evict tenants, he said the company's business model of rapidly buying, renovating and reselling properties often resulted in tenants being pushed out faster than the law allows.\u003c/p>\n\u003cp>\u003ca href=\"https://oag.ca.gov/system/files/attachments/press-docs/complaint%20%281%29.pdf\">According to the complaint from Bonta's office\u003c/a>, Wedgewood often filed eviction lawsuits against absentee homeowners who had lost their properties to foreclosure — as opposed to the current tenants — and used that \"as leverage to either pressure or remove tenants who were lawfully residing on the property.\"\u003c/p>\n\u003cp>\"We will be flipping Wedgewood's business model on its head, ensuring that tenants of its homes are afforded full protection under the law,\" Bonta said. \"If you are breaking our housing laws, I suggest you reconsider. Californians deserve better and I promise you, this is just the beginning. We will do everything in our power to hold those who violate our housing laws, and all laws, to account and bring them to justice.\"[aside postID=\"news_11868037,news_11793299,forum_2010101875112\" label=\"Related Posts\"]\u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-bonta-announces-judgment-against-real-estate-investment-company?print=true\">While part of the settlement\u003c/a>, which Wedgewood has agreed to, awaits court approval, the firm must pay $2.75 million to wrongfully evicted tenants and $750,000 in civil penalties and programs that support tenants or help combat homelessness.\u003c/p>\n\u003cp>The company also must submit regular updates to the attorney general’s office to demonstrate compliance with eviction laws, provide adequate notice and compensation to tenants when properties are sold, and educate its staff on tenants' rights.\u003c/p>\n\u003cp>In an unsigned statement sent from a generic company email, Wedgewood denied any wrongdoing.\u003c/p>\n\u003cp>\"Ultimately, Wedgewood made the business decision to reach a settlement and move forward with our ongoing commitment to revitalize and recirculate residential properties back into California’s housing supply, creating thousands of homeownership opportunities across the state,\" the statement said.\u003c/p>\n\u003cp>For Oakland Councilmember Carroll Fife, who formerly led a grassroots group that supported Moms 4 Housing, Wednesday's announcement came as a welcome surprise.\u003c/p>\n\u003cp>\"I'm excited that there's been some action by the attorney general to listen to what the people's legal teams have been saying, which is there needs to be attention to how Wedgewood operates in California,\" she said. \"And it's a big deal because we also will utilize this as evidence that we will hold you accountable if you're engaged in practices that harm tenants.\"\u003c/p>\n\u003cp>\u003cem>KQED's Tara Siler and Erin Baldassari contributed reporting to this post.\u003c/em>\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"State Attorney General Rob Bonta announced the judgment against Wedgewood over allegations it unlawfully evicted tenants from foreclosed properties it had purchased and was seeking to flip.","status":"publish","parent":0,"modified":1639025460,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":16,"wordCount":733},"headData":{"title":"Real Estate Investor at Center of Oakland's 'Moms 4 Housing' Standoff Hit by State With $3.5 Million Penalty for Unlawful Evictions | KQED","description":"State Attorney General Rob Bonta announced the judgment against Wedgewood over allegations it unlawfully evicted tenants from foreclosed properties it had purchased and was seeking to flip.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"11898493 https://ww2.kqed.org/news/?p=11898493","disqusUrl":"https://ww2.kqed.org/news/2021/12/08/real-estate-investor-at-center-of-oaklands-moms-4-housing-standoff-fined-3-5-million-for-unlawful-evictions/","disqusTitle":"Real Estate Investor at Center of Oakland's 'Moms 4 Housing' Standoff Hit by State With $3.5 Million Penalty for Unlawful Evictions","excludeFromSiteSearch":"Include","path":"/news/11898493/real-estate-investor-at-center-of-oaklands-moms-4-housing-standoff-fined-3-5-million-for-unlawful-evictions","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>California Attorney General Rob Bonta on Wednesday announced a $3.5 million judgment against real estate investment firm Wedgewood — known for its 2019 standoff with Oakland activist group Moms 4 Housing — over accusations it unlawfully evicted tenants from foreclosed houses.\u003c/p>\n\u003cp>The Redondo Beach-based company, which describes itself as an \"acquirer of distressed residential real estate,\" allegedly used a variety of illegal tactics to push out existing tenants in order to quickly fix up and resell — or \"flip\" — the properties for profit.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'Even amid this housing crisis, there are some who pursue profits over the interest of families and, worse, profits over the law.’","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"California Attorney General Rob Bonta","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\"Unfortunately, for too many Californians, their home has been ripped away from them, while others live on the precipice of eviction,\" Bonta said at Wednesday's press briefing, underscoring the importance of housing laws and tenant protections. \"But even amid this crisis, there are some who pursue profits over the interest of families and, worse, profits over the law.\"\u003c/p>\n\u003cp>As the property owner, Bonta said, Wedgewood deprived tenants of their legal right to continue living in their homes under preexisting leases for at least 90 days after foreclosure. The company's alleged tactics included evicting tenants without just cause in rent-controlled jurisdictions, filing false declarations to support unlawful evictions and failing to provide essential utility services to tenants, he said.\u003c/p>\n\u003cp>\"When you break the law, you will be held to account. There will be consequences,\" said Bonta, touting his office's recent housing initiatives.\u003c/p>\n\u003cp>Wedgewood drew national attention in 2019 when \u003ca href=\"https://www.kqed.org/news/11793299/moms-4-housing-in-oakland-vow-to-fight-potential-eviction\">activist group Moms 4 Housing\u003c/a> occupied a then-vacant house in West Oakland and remained there for several months before being forced out in a court-ordered eviction. The firm eventually \u003ca href=\"https://www.kqed.org/news/11797001/moms-4-housing-group-reaches-agreement-to-buy-vacant-house\">sold the property to a community land trust\u003c/a>, which offered some of the activists involved access to the property.\u003c/p>\n\u003cp>Although Bonta noted that Wedgewood, under certain conditions, is legally entitled to evict tenants, he said the company's business model of rapidly buying, renovating and reselling properties often resulted in tenants being pushed out faster than the law allows.\u003c/p>\n\u003cp>\u003ca href=\"https://oag.ca.gov/system/files/attachments/press-docs/complaint%20%281%29.pdf\">According to the complaint from Bonta's office\u003c/a>, Wedgewood often filed eviction lawsuits against absentee homeowners who had lost their properties to foreclosure — as opposed to the current tenants — and used that \"as leverage to either pressure or remove tenants who were lawfully residing on the property.\"\u003c/p>\n\u003cp>\"We will be flipping Wedgewood's business model on its head, ensuring that tenants of its homes are afforded full protection under the law,\" Bonta said. \"If you are breaking our housing laws, I suggest you reconsider. Californians deserve better and I promise you, this is just the beginning. We will do everything in our power to hold those who violate our housing laws, and all laws, to account and bring them to justice.\"\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11868037,news_11793299,forum_2010101875112","label":"Related Posts "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-bonta-announces-judgment-against-real-estate-investment-company?print=true\">While part of the settlement\u003c/a>, which Wedgewood has agreed to, awaits court approval, the firm must pay $2.75 million to wrongfully evicted tenants and $750,000 in civil penalties and programs that support tenants or help combat homelessness.\u003c/p>\n\u003cp>The company also must submit regular updates to the attorney general’s office to demonstrate compliance with eviction laws, provide adequate notice and compensation to tenants when properties are sold, and educate its staff on tenants' rights.\u003c/p>\n\u003cp>In an unsigned statement sent from a generic company email, Wedgewood denied any wrongdoing.\u003c/p>\n\u003cp>\"Ultimately, Wedgewood made the business decision to reach a settlement and move forward with our ongoing commitment to revitalize and recirculate residential properties back into California’s housing supply, creating thousands of homeownership opportunities across the state,\" the statement said.\u003c/p>\n\u003cp>For Oakland Councilmember Carroll Fife, who formerly led a grassroots group that supported Moms 4 Housing, Wednesday's announcement came as a welcome surprise.\u003c/p>\n\u003cp>\"I'm excited that there's been some action by the attorney general to listen to what the people's legal teams have been saying, which is there needs to be attention to how Wedgewood operates in California,\" she said. \"And it's a big deal because we also will utilize this as evidence that we will hold you accountable if you're engaged in practices that harm tenants.\"\u003c/p>\n\u003cp>\u003cem>KQED's Tara Siler and Erin Baldassari contributed reporting to this post.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11898493/real-estate-investor-at-center-of-oaklands-moms-4-housing-standoff-fined-3-5-million-for-unlawful-evictions","authors":["11784","1263"],"categories":["news_6266","news_8"],"tags":["news_17699","news_30348","news_18372","news_27626","news_1776","news_27233","news_137","news_30349"],"featImg":"news_11898555","label":"news"},"news_11832398":{"type":"posts","id":"news_11832398","meta":{"index":"posts_1591205157","site":"news","id":"11832398","score":null,"sort":[1596818412000]},"guestAuthors":[],"slug":"pandemic-assistance-for-billion-dollar-property-firms","title":"Pandemic Assistance for Billion-Dollar Property Firms","publishDate":1596818412,"format":"standard","headTitle":"Mark Fiore: Drawn to the Bay | KQED News","labelTerm":{"term":18515,"site":"news"},"content":"\u003cp>Some Bay Area property and development firms with billions of dollars in assets \u003ca href=\"https://www.kqed.org/news/11831660/ppp-payroll-protection-loans-landlords-mosser-maximus-emerald-fund\">received federal pandemic assistance loans\u003c/a> aimed to help small businesses.\u003c/p>\n\u003cp>While there is nothing wrong with getting a Paycheck Protection Program (PPP) loan, it doesn't seem to pass the smell test if the recipient is sitting on billions of dollars while taking millions in pandemic assistance.\u003c/p>\n\u003cp>If you're dealing in numbers that begin with a \"b,\" should you really be considered \"small?\"\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"Some Bay Area property and development firms with billions of dollars in assets received federal pandemic assistance targeting small businesses.","status":"publish","parent":0,"modified":1596818412,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":5,"wordCount":79},"headData":{"title":"Pandemic Assistance for Billion-Dollar Property Firms | KQED","description":"Some Bay Area property and development firms with billions of dollars in assets received federal pandemic assistance targeting small businesses.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"11832398 https://ww2.kqed.org/news/?p=11832398","disqusUrl":"https://ww2.kqed.org/news/2020/08/07/pandemic-assistance-for-billion-dollar-property-firms/","disqusTitle":"Pandemic Assistance for Billion-Dollar Property Firms","path":"/news/11832398/pandemic-assistance-for-billion-dollar-property-firms","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Some Bay Area property and development firms with billions of dollars in assets \u003ca href=\"https://www.kqed.org/news/11831660/ppp-payroll-protection-loans-landlords-mosser-maximus-emerald-fund\">received federal pandemic assistance loans\u003c/a> aimed to help small businesses.\u003c/p>\n\u003cp>While there is nothing wrong with getting a Paycheck Protection Program (PPP) loan, it doesn't seem to pass the smell test if the recipient is sitting on billions of dollars while taking millions in pandemic assistance.\u003c/p>\n\u003cp>If you're dealing in numbers that begin with a \"b,\" should you really be considered \"small?\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11832398/pandemic-assistance-for-billion-dollar-property-firms","authors":["3236"],"series":["news_18515"],"categories":["news_1758","news_6266","news_13"],"tags":["news_27350","news_27504","news_1775","news_20949","news_28354","news_27660","news_28370","news_27908","news_137","news_28368"],"featImg":"news_11832401","label":"news_18515"},"news_11721192":{"type":"posts","id":"news_11721192","meta":{"index":"posts_1591205157","site":"news","id":"11721192","score":null,"sort":[1550142003000]},"guestAuthors":[],"slug":"one-way-to-make-money-fast-in-san-francisco-sell-air","title":"One Way To Save San Francisco's Historic Buildings — Sell Air","publishDate":1550142003,"format":"image","headTitle":"One Way To Save San Francisco’s Historic Buildings — Sell Air | KQED","labelTerm":{},"content":"\u003cp>Last summer, Oakland artist Katie Chin was listening to podcasts while painting in her art studio, when a story\u003ca href=\"https://www.npr.org/sections/money/2018/07/20/630949390/the-market-for-air\"> on The Indicator from Planet Money caught her attention.\u003c/a>\u003c/p>\n\u003cp>It was about a famous 130-year-old deli in New York City called Katz’s Delicatessen. The Lower East Side neighborhood around the deli had gotten fancier — and property taxes and overhead had gotten expensive. The deli was on the brink of shutting its doors, but the owner learned he was sitting \u003ci>under \u003c/i>a whole lot of money.\u003c/p>\n\u003caside class=\"alignleft\">\n\u003ch3>Podcast Trivia Answer\u003c/h3>\n\u003cp>In our this episode, we asked the trivia question: \u003cstrong>The song “Little Boxes” by Malvina Reynolds was written about what Bay Area city?\u003c/strong>\u003c/p>\n\u003cp>Answer: Daly City\u003c/p>\n\u003cp>Click \u003ca href=\"https://www.eventbrite.com/e/kqeds-bay-curious-trivia-night-hosted-by-mannys-tickets-55662802942\" target=\"_blank\" rel=\"noopener\">here\u003c/a> for tickets and details for Bay Curious Trivia Night on March 14.\u003c/p>\n\u003c/aside>\n\u003cp>In New York City, you can buy and sell the air above or around your building so that a real estate developer somewhere else can build taller. The deli was able to stay open after the windfall the owner made selling the air rights. That got Katie in Oakland wondering if air could save some of the places she cares about.\u003c/p>\n\u003cp>Chin asked Bay Curious: “As we see more and more gentrification, are there any similar mechanisms that different nonprofits or arts organizations could take advantage of, like selling the air space above where they operate?”\u003c/p>\n\u003ch2>Building Sky High\u003c/h2>\n\u003cp>Salesforce Tower is San Francisco’s largest skyscraper and the \u003ca href=\"https://www.cnbc.com/2017/11/06/salesforce-tower-dreamforce-tour-tallest-building-west-coast.html\">tallest office building \u003c/a>on the West Coast. But the tower would be 100 feet shorter — 51 stories instead of 61 — if it didn’t take advantage of a program called the transfer of development rights, or TDR for short.\u003c/p>\n\u003cp>The \u003ca href=\"http://commissions.sfplanning.org/hpcpackets/HPC_TDR_Packet_2013_07_11.pdf\">TDR program\u003c/a> is San Francisco’s version of New York City’s air market.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>In San Francisco, how high you can build is limited by two things.\u003c/p>\n\u003cp>The first is the location of your building. In some neighborhoods, like the Sunset, buildings can be only about \u003ca href=\"http://library.amlegal.com/nxt/gateway.dll/California/zoningmaps/zoningmaps?f=templates%24fn=default.htm%243.0%24vid=amlegal:sanfrancisco_ca%24anc=JD_ZoningMaps\">40 feet high\u003c/a> — about four stories. But downtown, the city allows buildings as tall as \u003ca href=\"http://library.amlegal.com/nxt/gateway.dll/California/zoningmaps/zoningmaps?f=templates%24fn=default.htm%243.0%24vid=amlegal:sanfrancisco_ca%24anc=JD_ZoningMaps\">1,000 feet high.\u003c/a>\u003c/p>\n\u003cp>The second thing that determines how high you can build is the amount of land you build on. Larger lots usually mean taller buildings.\u003c/p>\n\u003cp>But if you use TDR, you can go beyond those two limiting factors and build higher.\u003c/p>\n\u003cfigure id=\"attachment_11721245\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-11721245\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Salesforce-1-800x533.jpg\" alt=\"A view of the Salesforce Tower from below.\" width=\"800\" height=\"533\">\u003cfigcaption class=\"wp-caption-text\">A view of Salesforce Tower from below. \u003ccite>(Sarah Craig/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>To understand how it works, picture an imaginary cube.\u003c/p>\n\u003cp>“On paper, for every property, we have this theoretical cube where development can occur,” says Corey Teague, zoning administrator of San Francisco’s Planning Department.\u003c/p>\n\u003cp>But the theoretical cube of space that the developer of the Salesforce Tower, Boston Properties, had to build on wasn’t as big as they wanted.\u003c/p>\n\u003cp>Through the TDR program, they found a building by the waterfront — \u003ca href=\"http://sfplanninggis.org/docs/landmarks_and_districts/LM107.pdf\">the Rincon Annex Post Office\u003c/a> — that had a cube of air for sale exactly the size they were looking for.\u003c/p>\n\u003cfigure id=\"attachment_11721243\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-11721243\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Salesforce-2-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\">\u003cfigcaption class=\"wp-caption-text\">Salesforce Tower is the largest office building on the West Coast. \u003ccite>(Sarah Craig/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“And so in the easiest sense,” says Teague, “it’s literally transferring that cube of space and adding it on top of their cube, to give them an even bigger cube to build within.”\u003c/p>\n\u003cp>Although lots of cities have air markets, San Francisco’s is fairly unusual. The city designed the program with an important limitation for an important purpose: You can buy extra cube space only from \u003cem>historical\u003c/em> buildings.\u003c/p>\n\u003cp>(The cities of San Jose and Oakland don’t have their own version of an air market, but in Oakland, many in the historic preservation community are calling for the city to create one similar to San Francisco’s as part of the Downtown Oakland Specific Plan.)\u003c/p>\n\u003cp>San Francisco’s program provides an incentive to preserve historical buildings because many \u003ca href=\"https://sf-planning.org/historic-preservation-faqs#raise\" target=\"_blank\" rel=\"noopener\">can’t actually use\u003c/a> their cube space because, well, they are historical, and there are limits to the renovations they can make.\u003c/p>\n\u003cp>So, the TDR program makes their unused air rights valuable.\u003c/p>\n\u003cp>After the air rights are sold, the owner of that building is required to use some of those funds to maintain the actual structure — such as making it earthquake-proof or repairing the facade.\u003c/p>\n\u003cp>San Francisco’s TDR program was created in 1985, just after the city saw a huge development boom where a lot of high-rise office buildings were built. People worried that historical buildings would be demolished and lost forever.\u003c/p>\n\u003cp>“There was a term that was thrown around by some folks called Manhattanization,” says Teague.\u003c/p>\n\u003cp>To date, the program has saved \u003ca href=\"http://commissions.sfplanning.org/hpcpackets/HPC_TDR_Packet_2013_07_11.pdf\"> over 100\u003c/a> historical buildings downtown.\u003c/p>\n\u003cp>“The development rights that were there aren’t just going unused. They’re going for additional development somewhere else in the city that can accommodate it and where we do need that development,” he says. “And so it’s really a win-win.”\u003c/p>\n\u003cfigure id=\"attachment_11721240\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-11721240\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/LuggageStoreGallery-1-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/01/LuggageStoreGallery-1-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/LuggageStoreGallery-1-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/LuggageStoreGallery-1-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/LuggageStoreGallery-1-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/LuggageStoreGallery-1-1920x1280.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Laurie Lazer, co-founder of the Luggage Store Gallery, shows off one of the masks that was made during a children’s art workshop. \u003ccite>(Sarah Craig/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>The TDR Program and the Arts\u003c/h2>\n\u003cp>When it comes to helping out struggling arts organizations in the Bay Area, like our question asker Katie Chin asked about, this program doesn’t do much.\u003c/p>\n\u003cp>I talked to the planning department, the mayor’s office, arts organizations and a TDR broker, but in all of San Francisco, I managed to find only one arts space that has used the program: \u003ca href=\"http://www.luggagestoregallery.org/\">the Luggage Store Gallery.\u003c/a>\u003c/p>\n\u003cp>Co-founder Laurie Lazer says the gallery serves between 20,000 and 25,000 people every year through events such as art workshops, exhibitions and an experimental music series.\u003c/p>\n\u003cfigure id=\"attachment_11721242\" class=\"wp-caption alignright\" style=\"max-width: 400px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"wp-image-11721242\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/LuggageStoreGallery-5-800x1166.jpg\" alt=\"\" width=\"400\" height=\"583\">\u003cfigcaption class=\"wp-caption-text\">The Luggage Store Gallery showed the work of Ferris Plock and Kelly Tunstall in a show titled “Preservation.” The theme of the show was loss, based on the artists’ experiences moving from home to home three or four times because of high housing costs. \u003ccite>(Sarah Craig/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“A lot of artists left the city and a lot of spaces just went ‘kaput,’ ” Lazer says. “They blossomed and then they fell.”\u003c/p>\n\u003cp>But the story of the Luggage Store is a bit different. It starts in the late 80’s when Lazer first saw the \u003ca href=\"http://propertymap.sfplanning.org/\">building.\u003c/a>\u003c/p>\n\u003cp>“One day I was riding my bike down Market Street,” says Lazer, “and I’m always looking and I saw these windows. And at that time there were these light fixtures, and it just looked like really glorious.”\u003c/p>\n\u003cp>The building had a large “For Rent” sign out front, and before long Lazer was renting the space. When the owner died a few years later, the building went up for sale.\u003c/p>\n\u003cp>Lazer and her co-founder didn’t want to leave, so they managed to find enough wealthy investors to buy the property and lease it back to them.\u003c/p>\n\u003cp>But in 2013, when the real estate market was doing very well, those investors came back to Lazer with bad news.\u003c/p>\n\u003cp>“So basically a couple of partners said, ‘You know what? We want to sell,’ ” she says.\u003c/p>\n\u003cfigure id=\"attachment_11721239\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"wp-image-11721239 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/LuggageStoreGallery-2-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\">\u003cfigcaption class=\"wp-caption-text\">Laurie Lazer (right) with her assistant, Hana Sun Lee (left), and Moy Eng (center), director of the Community Arts Stabilization Trust (CAST), a nonprofit that helps art organizations stay afloat in the Bay Area. \u003ccite>(Sarah Craig/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In order to stay in the building, Lazer and Smith had to buy it from the investors. That’s when they teamed up with a local nonprofit, the Northern California Community Loan Fund, and figured out they could use a combination of low-interest financing, grants from arts foundations and the TDR program.\u003c/p>\n\u003cp>Lazer and Smith sold their air rights for more than $200,000.\u003c/p>\n\u003cp>“It helped us significantly because raising $200,000 for us is a lot of work,” she says.\u003c/p>\n\u003cp>Lazer and her co-founder are still slowly paying off their investors. They have until 2022 to raise $1.7 million.\u003c/p>\n\u003cp>“We need culture and we need art,” she says. “Come on, we need it! I mean the city \u003cem>needs\u003c/em> it.”\u003c/p>\n\u003cp>And at least in \u003ci>this\u003c/i> case … a little bit of air kept one arts organization alive.\u003c/p>\n\u003cfigure id=\"attachment_11721238\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-11721238\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/LuggageStoreGallery-3-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\">\u003cfigcaption class=\"wp-caption-text\">Laurie Lazer (left), Moy Eng and Hana Sun Lee look at a painting in a recent exhibition titled “Preservation.” \u003ccite>(Sarah Craig/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>Keeping Arts in the Bay\u003c/h2>\n\u003cp>We’ve compiled a list of resources for arts organizations that need sustainable solutions for staying in the Bay Area:\u003c/p>\n\u003cp>\u003ca href=\"https://www.ncclf.org/sfsustainability/\">San Francisco Mayor’s Office’s Non-Profit Sustainability Initiative\u003c/a>\u003cbr>\n\u003ca href=\"https://cast-sf.org/\">Community Arts Stabilization Trust\u003c/a>\u003cbr>\n\u003ca href=\"https://www.ncclf.org/\">Northern California Community Loan Fund\u003c/a>\u003cbr>\n\u003ca href=\"https://www.facebook.com/OaktownWarehouseCoalition/\" target=\"_blank\" rel=\"noopener\">Oakland Warehouse Coalition\u003c/a>\u003cbr>\n\u003ca href=\"https://saferdiyspaces.org/about/\" target=\"_blank\" rel=\"noopener\">Safer DIY Spaces\u003c/a>\u003cbr>\n\u003ca href=\"https://oakclt.org/\" target=\"_blank\" rel=\"noopener\">Oakland Community Land Trust\u003c/a>\u003cbr>\n\u003ca href=\"https://www.m0xy.com/\" target=\"_blank\" rel=\"noopener\">m0xy\u003c/a>\u003c/p>\n\u003cp>[baycuriousquestion]\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"In San Francisco, owners of historic buildings can sell undeveloped air space, allowing developers to build higher. ","status":"publish","parent":0,"modified":1700591442,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":true,"hasPolis":false,"paragraphCount":48,"wordCount":1510},"headData":{"title":"One Way To Save San Francisco's Historic Buildings — Sell Air | KQED","description":"In San Francisco, owners of historic buildings can sell undeveloped air space, allowing developers to build higher. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"source":"Bay Curious","sourceUrl":"https://www.kqed.org/news/series/baycurious","audioTrackLength":664,"path":"/news/11721192/one-way-to-make-money-fast-in-san-francisco-sell-air","audioUrl":"https://www.kqed.org/.stream/anon/radio/new-bay-curious/2019/02/AirMarket.mp3","audioDuration":676000,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Last summer, Oakland artist Katie Chin was listening to podcasts while painting in her art studio, when a story\u003ca href=\"https://www.npr.org/sections/money/2018/07/20/630949390/the-market-for-air\"> on The Indicator from Planet Money caught her attention.\u003c/a>\u003c/p>\n\u003cp>It was about a famous 130-year-old deli in New York City called Katz’s Delicatessen. The Lower East Side neighborhood around the deli had gotten fancier — and property taxes and overhead had gotten expensive. The deli was on the brink of shutting its doors, but the owner learned he was sitting \u003ci>under \u003c/i>a whole lot of money.\u003c/p>\n\u003caside class=\"alignleft\">\n\u003ch3>Podcast Trivia Answer\u003c/h3>\n\u003cp>In our this episode, we asked the trivia question: \u003cstrong>The song “Little Boxes” by Malvina Reynolds was written about what Bay Area city?\u003c/strong>\u003c/p>\n\u003cp>Answer: Daly City\u003c/p>\n\u003cp>Click \u003ca href=\"https://www.eventbrite.com/e/kqeds-bay-curious-trivia-night-hosted-by-mannys-tickets-55662802942\" target=\"_blank\" rel=\"noopener\">here\u003c/a> for tickets and details for Bay Curious Trivia Night on March 14.\u003c/p>\n\u003c/aside>\n\u003cp>In New York City, you can buy and sell the air above or around your building so that a real estate developer somewhere else can build taller. The deli was able to stay open after the windfall the owner made selling the air rights. That got Katie in Oakland wondering if air could save some of the places she cares about.\u003c/p>\n\u003cp>Chin asked Bay Curious: “As we see more and more gentrification, are there any similar mechanisms that different nonprofits or arts organizations could take advantage of, like selling the air space above where they operate?”\u003c/p>\n\u003ch2>Building Sky High\u003c/h2>\n\u003cp>Salesforce Tower is San Francisco’s largest skyscraper and the \u003ca href=\"https://www.cnbc.com/2017/11/06/salesforce-tower-dreamforce-tour-tallest-building-west-coast.html\">tallest office building \u003c/a>on the West Coast. But the tower would be 100 feet shorter — 51 stories instead of 61 — if it didn’t take advantage of a program called the transfer of development rights, or TDR for short.\u003c/p>\n\u003cp>The \u003ca href=\"http://commissions.sfplanning.org/hpcpackets/HPC_TDR_Packet_2013_07_11.pdf\">TDR program\u003c/a> is San Francisco’s version of New York City’s air market.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>In San Francisco, how high you can build is limited by two things.\u003c/p>\n\u003cp>The first is the location of your building. In some neighborhoods, like the Sunset, buildings can be only about \u003ca href=\"http://library.amlegal.com/nxt/gateway.dll/California/zoningmaps/zoningmaps?f=templates%24fn=default.htm%243.0%24vid=amlegal:sanfrancisco_ca%24anc=JD_ZoningMaps\">40 feet high\u003c/a> — about four stories. But downtown, the city allows buildings as tall as \u003ca href=\"http://library.amlegal.com/nxt/gateway.dll/California/zoningmaps/zoningmaps?f=templates%24fn=default.htm%243.0%24vid=amlegal:sanfrancisco_ca%24anc=JD_ZoningMaps\">1,000 feet high.\u003c/a>\u003c/p>\n\u003cp>The second thing that determines how high you can build is the amount of land you build on. Larger lots usually mean taller buildings.\u003c/p>\n\u003cp>But if you use TDR, you can go beyond those two limiting factors and build higher.\u003c/p>\n\u003cfigure id=\"attachment_11721245\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-11721245\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Salesforce-1-800x533.jpg\" alt=\"A view of the Salesforce Tower from below.\" width=\"800\" height=\"533\">\u003cfigcaption class=\"wp-caption-text\">A view of Salesforce Tower from below. \u003ccite>(Sarah Craig/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>To understand how it works, picture an imaginary cube.\u003c/p>\n\u003cp>“On paper, for every property, we have this theoretical cube where development can occur,” says Corey Teague, zoning administrator of San Francisco’s Planning Department.\u003c/p>\n\u003cp>But the theoretical cube of space that the developer of the Salesforce Tower, Boston Properties, had to build on wasn’t as big as they wanted.\u003c/p>\n\u003cp>Through the TDR program, they found a building by the waterfront — \u003ca href=\"http://sfplanninggis.org/docs/landmarks_and_districts/LM107.pdf\">the Rincon Annex Post Office\u003c/a> — that had a cube of air for sale exactly the size they were looking for.\u003c/p>\n\u003cfigure id=\"attachment_11721243\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-11721243\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Salesforce-2-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\">\u003cfigcaption class=\"wp-caption-text\">Salesforce Tower is the largest office building on the West Coast. \u003ccite>(Sarah Craig/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“And so in the easiest sense,” says Teague, “it’s literally transferring that cube of space and adding it on top of their cube, to give them an even bigger cube to build within.”\u003c/p>\n\u003cp>Although lots of cities have air markets, San Francisco’s is fairly unusual. The city designed the program with an important limitation for an important purpose: You can buy extra cube space only from \u003cem>historical\u003c/em> buildings.\u003c/p>\n\u003cp>(The cities of San Jose and Oakland don’t have their own version of an air market, but in Oakland, many in the historic preservation community are calling for the city to create one similar to San Francisco’s as part of the Downtown Oakland Specific Plan.)\u003c/p>\n\u003cp>San Francisco’s program provides an incentive to preserve historical buildings because many \u003ca href=\"https://sf-planning.org/historic-preservation-faqs#raise\" target=\"_blank\" rel=\"noopener\">can’t actually use\u003c/a> their cube space because, well, they are historical, and there are limits to the renovations they can make.\u003c/p>\n\u003cp>So, the TDR program makes their unused air rights valuable.\u003c/p>\n\u003cp>After the air rights are sold, the owner of that building is required to use some of those funds to maintain the actual structure — such as making it earthquake-proof or repairing the facade.\u003c/p>\n\u003cp>San Francisco’s TDR program was created in 1985, just after the city saw a huge development boom where a lot of high-rise office buildings were built. People worried that historical buildings would be demolished and lost forever.\u003c/p>\n\u003cp>“There was a term that was thrown around by some folks called Manhattanization,” says Teague.\u003c/p>\n\u003cp>To date, the program has saved \u003ca href=\"http://commissions.sfplanning.org/hpcpackets/HPC_TDR_Packet_2013_07_11.pdf\"> over 100\u003c/a> historical buildings downtown.\u003c/p>\n\u003cp>“The development rights that were there aren’t just going unused. They’re going for additional development somewhere else in the city that can accommodate it and where we do need that development,” he says. “And so it’s really a win-win.”\u003c/p>\n\u003cfigure id=\"attachment_11721240\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-11721240\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/LuggageStoreGallery-1-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/01/LuggageStoreGallery-1-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/LuggageStoreGallery-1-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/LuggageStoreGallery-1-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/LuggageStoreGallery-1-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/LuggageStoreGallery-1-1920x1280.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Laurie Lazer, co-founder of the Luggage Store Gallery, shows off one of the masks that was made during a children’s art workshop. \u003ccite>(Sarah Craig/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>The TDR Program and the Arts\u003c/h2>\n\u003cp>When it comes to helping out struggling arts organizations in the Bay Area, like our question asker Katie Chin asked about, this program doesn’t do much.\u003c/p>\n\u003cp>I talked to the planning department, the mayor’s office, arts organizations and a TDR broker, but in all of San Francisco, I managed to find only one arts space that has used the program: \u003ca href=\"http://www.luggagestoregallery.org/\">the Luggage Store Gallery.\u003c/a>\u003c/p>\n\u003cp>Co-founder Laurie Lazer says the gallery serves between 20,000 and 25,000 people every year through events such as art workshops, exhibitions and an experimental music series.\u003c/p>\n\u003cfigure id=\"attachment_11721242\" class=\"wp-caption alignright\" style=\"max-width: 400px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"wp-image-11721242\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/LuggageStoreGallery-5-800x1166.jpg\" alt=\"\" width=\"400\" height=\"583\">\u003cfigcaption class=\"wp-caption-text\">The Luggage Store Gallery showed the work of Ferris Plock and Kelly Tunstall in a show titled “Preservation.” The theme of the show was loss, based on the artists’ experiences moving from home to home three or four times because of high housing costs. \u003ccite>(Sarah Craig/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“A lot of artists left the city and a lot of spaces just went ‘kaput,’ ” Lazer says. “They blossomed and then they fell.”\u003c/p>\n\u003cp>But the story of the Luggage Store is a bit different. It starts in the late 80’s when Lazer first saw the \u003ca href=\"http://propertymap.sfplanning.org/\">building.\u003c/a>\u003c/p>\n\u003cp>“One day I was riding my bike down Market Street,” says Lazer, “and I’m always looking and I saw these windows. And at that time there were these light fixtures, and it just looked like really glorious.”\u003c/p>\n\u003cp>The building had a large “For Rent” sign out front, and before long Lazer was renting the space. When the owner died a few years later, the building went up for sale.\u003c/p>\n\u003cp>Lazer and her co-founder didn’t want to leave, so they managed to find enough wealthy investors to buy the property and lease it back to them.\u003c/p>\n\u003cp>But in 2013, when the real estate market was doing very well, those investors came back to Lazer with bad news.\u003c/p>\n\u003cp>“So basically a couple of partners said, ‘You know what? We want to sell,’ ” she says.\u003c/p>\n\u003cfigure id=\"attachment_11721239\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"wp-image-11721239 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/LuggageStoreGallery-2-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\">\u003cfigcaption class=\"wp-caption-text\">Laurie Lazer (right) with her assistant, Hana Sun Lee (left), and Moy Eng (center), director of the Community Arts Stabilization Trust (CAST), a nonprofit that helps art organizations stay afloat in the Bay Area. \u003ccite>(Sarah Craig/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In order to stay in the building, Lazer and Smith had to buy it from the investors. That’s when they teamed up with a local nonprofit, the Northern California Community Loan Fund, and figured out they could use a combination of low-interest financing, grants from arts foundations and the TDR program.\u003c/p>\n\u003cp>Lazer and Smith sold their air rights for more than $200,000.\u003c/p>\n\u003cp>“It helped us significantly because raising $200,000 for us is a lot of work,” she says.\u003c/p>\n\u003cp>Lazer and her co-founder are still slowly paying off their investors. They have until 2022 to raise $1.7 million.\u003c/p>\n\u003cp>“We need culture and we need art,” she says. “Come on, we need it! I mean the city \u003cem>needs\u003c/em> it.”\u003c/p>\n\u003cp>And at least in \u003ci>this\u003c/i> case … a little bit of air kept one arts organization alive.\u003c/p>\n\u003cfigure id=\"attachment_11721238\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-11721238\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/LuggageStoreGallery-3-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\">\u003cfigcaption class=\"wp-caption-text\">Laurie Lazer (left), Moy Eng and Hana Sun Lee look at a painting in a recent exhibition titled “Preservation.” \u003ccite>(Sarah Craig/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>Keeping Arts in the Bay\u003c/h2>\n\u003cp>We’ve compiled a list of resources for arts organizations that need sustainable solutions for staying in the Bay Area:\u003c/p>\n\u003cp>\u003ca href=\"https://www.ncclf.org/sfsustainability/\">San Francisco Mayor’s Office’s Non-Profit Sustainability Initiative\u003c/a>\u003cbr>\n\u003ca href=\"https://cast-sf.org/\">Community Arts Stabilization Trust\u003c/a>\u003cbr>\n\u003ca href=\"https://www.ncclf.org/\">Northern California Community Loan Fund\u003c/a>\u003cbr>\n\u003ca href=\"https://www.facebook.com/OaktownWarehouseCoalition/\" target=\"_blank\" rel=\"noopener\">Oakland Warehouse Coalition\u003c/a>\u003cbr>\n\u003ca href=\"https://saferdiyspaces.org/about/\" target=\"_blank\" rel=\"noopener\">Safer DIY Spaces\u003c/a>\u003cbr>\n\u003ca href=\"https://oakclt.org/\" target=\"_blank\" rel=\"noopener\">Oakland Community Land Trust\u003c/a>\u003cbr>\n\u003ca href=\"https://www.m0xy.com/\" target=\"_blank\" rel=\"noopener\">m0xy\u003c/a>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"baycuriousquestion","attributes":{"named":{"label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11721192/one-way-to-make-money-fast-in-san-francisco-sell-air","authors":["11327"],"programs":["news_33523"],"series":["news_17986"],"categories":["news_223","news_8","news_33520"],"tags":["news_23840","news_18426","news_24374","news_21863","news_137"],"featImg":"news_11726036","label":"source_news_11721192"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. 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Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.","airtime":"SUN 2pm","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2023/08/possible-5gxfizEbKOJ-pbF5ASgxrs_.1400x1400.jpg","officialWebsiteLink":"https://www.possible.fm/","meta":{"site":"news","source":"Possible"},"link":"/radio/program/possible","subscribe":{"apple":"https://podcasts.apple.com/us/podcast/possible/id1677184070","spotify":"https://open.spotify.com/show/730YpdUSNlMyPQwNnyjp4k"}},"1a":{"id":"1a","title":"1A","info":"1A is home to the national conversation. 1A brings on great guests and frames the best debate in ways that make you think, share and engage.","airtime":"MON-THU 11pm-12am","imageSrc":"https://ww2.kqed.org/radio/wp-content/uploads/sites/50/2018/04/1a.jpg","officialWebsiteLink":"https://the1a.org/","meta":{"site":"news","source":"npr"},"link":"/radio/program/1a","subscribe":{"npr":"https://rpb3r.app.goo.gl/RBrW","apple":"https://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?s=143441&mt=2&id=1188724250&at=11l79Y&ct=nprdirectory","tuneIn":"https://tunein.com/radio/1A-p947376/","rss":"https://feeds.npr.org/510316/podcast.xml"}},"all-things-considered":{"id":"all-things-considered","title":"All Things Considered","info":"Every weekday, \u003cem>All Things Considered\u003c/em> hosts Robert Siegel, Audie Cornish, Ari Shapiro, and Kelly McEvers present the program's trademark mix of news, interviews, commentaries, reviews, and offbeat features. 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And we’ll do it with your help! You ask the questions. You decide what Bay Curious investigates. 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Hosted by journalists of color, the show tackles the subject of race head-on, exploring how it impacts every part of society — from politics and pop culture to history, sports and more.\u003cbr />\u003cbr />\u003cem>Life Kit\u003c/em>, which will be in the second part of the hour, guides you through spaces and feelings no one prepares you for — from finances to mental health, from workplace microaggressions to imposter syndrome, from relationships to parenting. The show features experts with real world experience and shares their knowledge. Because everyone needs a little help being human.\u003cbr />\u003cbr />\u003ca href=\"https://www.npr.org/podcasts/510312/codeswitch\">\u003cem>Code Switch\u003c/em> offical site and podcast\u003c/a>\u003cbr />\u003ca href=\"https://www.npr.org/lifekit\">\u003cem>Life Kit\u003c/em> offical site and podcast\u003c/a>\u003cbr />","airtime":"SUN 9pm-10pm","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2021/12/CodeSwitchLifeKit_StationGraphics_300x300EmailGraphic.png","meta":{"site":"radio","source":"npr"},"link":"/radio/program/code-switch-life-kit","subscribe":{"apple":"https://podcasts.apple.com/podcast/1112190608?mt=2&at=11l79Y&ct=nprdirectory","google":"https://podcasts.google.com/feed/aHR0cHM6Ly93d3cubnByLm9yZy9yc3MvcG9kY2FzdC5waHA_aWQ9NTEwMzEy","spotify":"https://open.spotify.com/show/3bExJ9JQpkwNhoHvaIIuyV","rss":"https://feeds.npr.org/510312/podcast.xml"}},"commonwealth-club":{"id":"commonwealth-club","title":"Commonwealth Club of California Podcast","info":"The Commonwealth Club of California is the nation's oldest and largest public affairs forum. 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