Similar Homes, Different Taxes: Is Proposition 13 Fair to New Homeowners?
Too Few Homes: Is Proposition 13 to Blame for California's Housing Shortage?
Proposition 5 Renews California's Debate Over Property Taxes
Proposition 13 Promised to Keep Our Neighborhoods Stable. Did It Work?
Gentrification and Climate Change Meet at 'The North Pole'
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She was outbid with all-cash offers nearly every time.\u003c/p>\n\u003caside class=\"pullquote alignright\">'I feel like it’s just the price I pay for living here.'\u003ccite>Jas Johl, North Oakland homeowner\u003c/cite>\u003c/aside>\n\u003cp>Johl, who works for the tech giant Salesforce, finally found a place in a neighborhood in North Oakland in 2016. It was pricey — $850,000 — but she thought it was a pretty good bargain for the area.\u003c/p>\n\u003cp>She also knew that a hefty property tax bill would accompany the price tag. And because Johl was a new homeowner, she’d be paying a lot more than many of her neighbors.\u003c/p>\n\u003cp>“I was expecting it, but I wasn’t expecting how much it would be, I guess,” says Johl.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Johl paid nearly $13,000 in property taxes last year. It put a crimp in her budget — she rents out a room to help her afford her mortgage. But she was OK with paying that much because she knew the local schools needed tax dollars.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"http://projects.scpr.org/prop-13/\">The California Dream: The Oakland Block That Proposition 13 Built\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"http://projects.scpr.org/prop-13/\">\u003cimg src=\"https://u.s.kqed.net/2018/10/23/Prop13600.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003cp>Since 1978, Proposition 13 has played an outsized role in who can afford to live in California. Did it save the California Dream, or spoil it? To answer that question, we focused on a single block in a middle-class neighborhood in North Oakland.\u003c/p>\n\u003c/aside>\n\u003cp>“I feel like it’s just the price I pay for living here,” says Johl.\u003c/p>\n\u003cp>Just around the corner, less than 300 feet from Johl’s house, is a duplex owned by Don Weinger.\u003c/p>\n\u003cp>The properties are about the same square size — Johl’s house is 1,400 square feet, while Weinger’s is 1,600, including the downstairs rental unit. The real estate listing site Zillow estimates both houses are worth around $900,000.\u003c/p>\n\u003cp>But because of Proposition 13, Weinger’s property taxes are 40 percent lower than Johl’s — he paid a little over $7,000 last year.\u003c/p>\n\u003cp>That’s because Weinger bought his house in 2002, for $365,000. Under Proposition 13, homeowners pay property taxes based on the original purchase price, not the current market value.\u003c/p>\n\u003cp>Weinger and Johl were unaware that they were paying wildly different property taxes than their neighbors. Weinger, a speech pathologist for the Oakland Unified School District, says he couldn’t really afford to pay property taxes on what his duplex is currently worth. But at the same time, he’s not sure that his discount is fair.\u003c/p>\n\u003cp>“I absolutely sympathize,” says Weinger. “I’m happy to benefit from [Proposition 13], but I don’t think it’s good for California as a whole.”\u003c/p>\n\u003cp>Weinger’s property tax bill is by no means an outlier in this neighborhood. One decades-long owner of a 1,300-square-foot home up the street paid only $1,168 in taxes last year. Zillow estimates that house to be worth more than $700,000. Several other longtime homeowners who no longer live in the neighborhood, but instead rent their properties, are paying less than $2,000 in property taxes.\u003c/p>\n\u003cfigure id=\"attachment_11700802\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11700802\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/fairness-don-home-800x533.jpg\" alt=\"don-home\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Because of Proposition 13, Don Weinger pays 40 percent less in property taxes than Johl, even though both of their homes are worth about $900,000 today. \u003ccite>(Sean Havey for California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“How strict the assessment limits are is what makes California unique,” says Richard Auxier, a research associate with the Washington, D.C.-based Tax Policy Center. “You could have two neighbors earning the same amount of income, in roughly the same value home. And one is paying exponentially more in taxes.”\u003c/p>\n\u003cp>When voters passed Proposition 13 in 1978, part of the rationale was to protect older homeowners from rising property taxes they couldn’t afford. Defenders of Proposition 13 argue that it’s still an essential tool to preserve neighborhood stability.\u003c/p>\n\u003cp>“It allows people to remain in their homes who otherwise might be driven out by taxes,” says David Kline, a spokesman for the California Taxpayers Association. “The low-income homeowner is the most at risk of not being able to afford escalating property taxes. It’s the biggest help to those at risk.”\u003c/p>\n\u003cp>But as California home prices reach staggering new highs, the growing disparity between what newer and older homeowners pay on similarly valued property has renewed a problematic question: Is Proposition 13 fair?\u003c/p>\n\u003ch3>Who Benefits From Proposition 13?\u003c/h3>\n\u003cp>Overall, polling suggests Californians like Proposition 13, at least in theory. \u003ca href=\"http://www.ppic.org/publication/proposition-13-40-years-later/\" target=\"_blank\" rel=\"noopener\">About 57 percent\u003c/a> of Californians say Proposition 13 has been mostly good for the state, according to a Public Policy Institute of California survey conducted in March.\u003c/p>\n\u003caside class=\"pullquote alignright\">\u003cem>'This version of property tax relief is very poorly targeted.'\u003ccite>Richard Auxier, Tax Policy Center\u003c/cite>\u003c/em>\u003c/aside>\n\u003cp>But voters are more conflicted about how Proposition 13 treats newer and older homeowners. Only \u003ca href=\"https://calmatters.org/articles/california-proposition-13-approval-rating/\" target=\"_blank\" rel=\"noopener\">41 percent\u003c/a> of Californians believe someone who recently bought a home should pay higher property taxes than someone who bought an identical home decades ago.\u003c/p>\n\u003cp>California isn’t the only place that provides major property tax breaks to longtime homeowners. Many other states limit how much local governments can tax homes, especially for low-income or senior homeowners.\u003c/p>\n\u003cp>But property tax relief in other states is typically more tailored to vulnerable populations than it is here, says Auxier. Proposition 13 provides benefits to anyone fortunate enough to own a home, regardless of their income.\u003c/p>\n\u003cp>“This version of property tax relief is very poorly targeted,” says Auxier. “The problem is that it does nothing but reward homeowners who have been in their homes a long time, no matter who those homeowners are.”\u003c/p>\n\u003cp>Because homeownership is generally correlated with higher incomes, and because Proposition 13 provides more benefits in the long term to more expensive homes, the vast majority of tax relief goes to higher-income households.\u003c/p>\n\u003cp>The nonpartisan Legislative Analyst’s Office \u003ca href=\"https://lao.ca.gov/publications/report/3497#Do_Proposition_13.2019s_Benefits_for_Property_Owners_Vary_With_Income.3F\" target=\"_blank\" rel=\"noopener\">estimates\u003c/a> that roughly 50 percent of the tax savings provided by Proposition 13 goes to households that make over $120,000. Those estimates don’t take into account any tax benefit landlords may pass on to renters, however.\u003c/p>\n\u003cp>Defenders of Proposition 13 say that’s the wrong way of looking at who is benefiting most from the measure.\u003c/p>\n\u003cp>In gentrifying neighborhoods like this one in North Oakland, some of the biggest beneficiaries of Proposition 13 are not higher-income households, but middle-class families who bought decades earlier when houses in the area were much more affordable.\u003c/p>\n\u003cfigure id=\"attachment_11700806\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11700806\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/scenes-garages-800x533.jpg\" alt=\"scenes-garages\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The median property value on this North Oakland block was three quarters of a million dollars last year. \u003ccite>(Sean Havey for California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>That’s part of the reason why Johl feels mostly OK about paying higher property taxes than some of her neighbors.\u003c/p>\n\u003cp>“I don’t think it would be fair to ask a family down the street who bought their house 20 years ago to pay more,” says Johl. “Because how would you know if they could afford it?”\u003c/p>\n\u003cp>Auxier concedes that some truly middle-class families from traditionally marginalized communities may benefit from Proposition 13. But he stresses that it’s more an exception to the rule, and to remember the costs associated with that benefit.\u003c/p>\n\u003cp>“Those are tax dollars that aren’t going to education programs or health care programs that could help other parts of those communities that don’t own incredibly expensive homes,” says Auxier.\u003c/p>\n\u003ch3>Certainty for New Homeowners, at a Cost\u003c/h3>\n\u003cp>New homeowners like Johl may be paying way more in property taxes this year than their neighbors. But Proposition 13 provides a great deal of certainty for her going forward. Regardless of how much her home’s value rises, Johl knows her property tax base will not increase more than 2 percent per year.\u003c/p>\n\u003cp>“Prop. 13 provides certainty for every property owner,” says Kline. “So when you buy your property you know exactly what your tax is going to be that year and what it’s going to be for years to come. And you can put those numbers in your budget and know what your bills will be going forward.”\u003c/p>\n\u003cp>Critics say those savings are mitigated by other taxes state and local governments levy to make up for lost property tax revenue. California has some of the highest income and sales taxes in the country.\u003c/p>\n\u003ch3>A Proposition 13 Poster Child (Who Loathes It)\u003c/h3>\n\u003cp>In 1988, Stephanie Nordlinger became a first-time homeowner. She bought a small house in the Los Angeles neighborhood of Baldwin Hills for $170,000.\u003c/p>\n\u003caside class=\"pullquote alignright\">'It’s not fair. It’s clearly not fair.'\u003ccite>Stephanie Nordlinger, homeowner\u003c/cite>\u003c/aside>\n\u003cp>Nordlinger, an attorney, was never a fan of Proposition 13. When it passed, she feared that government services like parks and schools would suffer. But she also thought it was fundamentally wrong that she was paying more in property taxes than richer residents of the city, just because of when she bought.\u003c/p>\n\u003cp>After Nordlinger got her first property tax bill, she sued on the grounds that Proposition 13 violated the 14th Amendment: equal protection under the law.\u003c/p>\n\u003cp>“Someone is paying a lot more than another for getting the same services from government agencies,” says Nordlinger. “It’s not fair. It’s clearly not fair.”\u003c/p>\n\u003cfigure id=\"attachment_11700805\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11700805\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/fairness-stephanie-portrait-800x533.jpg\" alt=\"stephanie\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Stephanie Nordlinger’s challenge to Proposition 13 went all the way to the Supreme Court. She’s pictured here in the backyard of her home. \u003ccite>(Adriene Hill/California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\u003ca href=\"https://www.oyez.org/cases/1991/90-1912\" target=\"_blank\" rel=\"noopener\">Nordlinger’s case\u003c/a> went all the way to the U.S. Supreme Court. While multiple justices expressed concern that Proposition 13 was unwise policy, Nordlinger lost her case.\u003c/p>\n\u003cp>Thirty years later, still at her Baldwin Hills home, Nordlinger is in many ways a poster child for the type of Californian Proposition 13 defenders say the initiative helps the most.\u003c/p>\n\u003cp>She’s a senior citizen on a limited income. Her house is valued around $900,000, but she pays just $3,400 in property taxes. She benefits enormously from Proposition 13.\u003c/p>\n\u003cp>But Nordlinger’s attitude toward the initiative hasn’t changed. She would welcome being taxed at a rate the new homeowners down the street are taxed, if it meant local government services would improve.\u003c/p>\n\u003cp>“When I was a kid, California was on top,” says Nordlinger. “Some parts of California are perfect, and very nice, and as good as anything in the world. But other parts of California are just not what they should be.”\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://www.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">The California Dream series\u003c/a> is a statewide media collaboration of CALmatters, KPBS, KPCC, KQED and Capital Public Radio with support from the Corporation for Public Broadcasting, the James Irvine Foundation and the College Futures Foundation.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cimg class=\"aligncenter size-full wp-image-11660142\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/04/CADreamBanner.jpg\" alt=\"\" width=\"1867\" height=\"512\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner.jpg 1867w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-160x44.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-800x219.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1020x280.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1180x324.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-960x263.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-240x66.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-375x103.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-520x143.jpg 520w\" sizes=\"(max-width: 1867px) 100vw, 1867px\">\u003c/p>\n\n","blocks":[],"excerpt":"Defenders say the law was intended to protect older homeowners from rising property taxes. But with property values skyrocketing, there's a growing disparity among taxpayers.","status":"publish","parent":0,"modified":1540420597,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":48,"wordCount":1857},"headData":{"title":"Similar Homes, Different Taxes: Is Proposition 13 Fair to New Homeowners? | KQED","description":"Defenders say the law was intended to protect older homeowners from rising property taxes. But with property values skyrocketing, there's a growing disparity among taxpayers.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"11700810 https://ww2.kqed.org/news/?p=11700810","disqusUrl":"https://ww2.kqed.org/news/2018/10/24/similar-homes-different-taxes-is-proposition-13-fair-to-new-homeowners/","disqusTitle":"Similar Homes, Different Taxes: Is Proposition 13 Fair to New Homeowners?","nprByline":"\u003ca href=\"https://calmatters.org/articles/author/matt-levin/\" target=\"_blank\" rel=\"noopener\">Matt Levin/CALmatters\u003c/a>","path":"/news/11700810/similar-homes-different-taxes-is-proposition-13-fair-to-new-homeowners","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Like so many younger Californians, Jas Johl struggled to buy her first house.\u003c/p>\n\u003cp>During a yearlong hunt for something in her budget, she placed bids on about 10 houses in the Bay Area. She was outbid with all-cash offers nearly every time.\u003c/p>\n\u003caside class=\"pullquote alignright\">'I feel like it’s just the price I pay for living here.'\u003ccite>Jas Johl, North Oakland homeowner\u003c/cite>\u003c/aside>\n\u003cp>Johl, who works for the tech giant Salesforce, finally found a place in a neighborhood in North Oakland in 2016. It was pricey — $850,000 — but she thought it was a pretty good bargain for the area.\u003c/p>\n\u003cp>She also knew that a hefty property tax bill would accompany the price tag. And because Johl was a new homeowner, she’d be paying a lot more than many of her neighbors.\u003c/p>\n\u003cp>“I was expecting it, but I wasn’t expecting how much it would be, I guess,” says Johl.\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>Johl paid nearly $13,000 in property taxes last year. It put a crimp in her budget — she rents out a room to help her afford her mortgage. But she was OK with paying that much because she knew the local schools needed tax dollars.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"http://projects.scpr.org/prop-13/\">The California Dream: The Oakland Block That Proposition 13 Built\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"http://projects.scpr.org/prop-13/\">\u003cimg src=\"https://u.s.kqed.net/2018/10/23/Prop13600.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003cp>Since 1978, Proposition 13 has played an outsized role in who can afford to live in California. Did it save the California Dream, or spoil it? To answer that question, we focused on a single block in a middle-class neighborhood in North Oakland.\u003c/p>\n\u003c/aside>\n\u003cp>“I feel like it’s just the price I pay for living here,” says Johl.\u003c/p>\n\u003cp>Just around the corner, less than 300 feet from Johl’s house, is a duplex owned by Don Weinger.\u003c/p>\n\u003cp>The properties are about the same square size — Johl’s house is 1,400 square feet, while Weinger’s is 1,600, including the downstairs rental unit. The real estate listing site Zillow estimates both houses are worth around $900,000.\u003c/p>\n\u003cp>But because of Proposition 13, Weinger’s property taxes are 40 percent lower than Johl’s — he paid a little over $7,000 last year.\u003c/p>\n\u003cp>That’s because Weinger bought his house in 2002, for $365,000. Under Proposition 13, homeowners pay property taxes based on the original purchase price, not the current market value.\u003c/p>\n\u003cp>Weinger and Johl were unaware that they were paying wildly different property taxes than their neighbors. Weinger, a speech pathologist for the Oakland Unified School District, says he couldn’t really afford to pay property taxes on what his duplex is currently worth. But at the same time, he’s not sure that his discount is fair.\u003c/p>\n\u003cp>“I absolutely sympathize,” says Weinger. “I’m happy to benefit from [Proposition 13], but I don’t think it’s good for California as a whole.”\u003c/p>\n\u003cp>Weinger’s property tax bill is by no means an outlier in this neighborhood. One decades-long owner of a 1,300-square-foot home up the street paid only $1,168 in taxes last year. Zillow estimates that house to be worth more than $700,000. Several other longtime homeowners who no longer live in the neighborhood, but instead rent their properties, are paying less than $2,000 in property taxes.\u003c/p>\n\u003cfigure id=\"attachment_11700802\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11700802\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/fairness-don-home-800x533.jpg\" alt=\"don-home\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-don-home-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Because of Proposition 13, Don Weinger pays 40 percent less in property taxes than Johl, even though both of their homes are worth about $900,000 today. \u003ccite>(Sean Havey for California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“How strict the assessment limits are is what makes California unique,” says Richard Auxier, a research associate with the Washington, D.C.-based Tax Policy Center. “You could have two neighbors earning the same amount of income, in roughly the same value home. And one is paying exponentially more in taxes.”\u003c/p>\n\u003cp>When voters passed Proposition 13 in 1978, part of the rationale was to protect older homeowners from rising property taxes they couldn’t afford. Defenders of Proposition 13 argue that it’s still an essential tool to preserve neighborhood stability.\u003c/p>\n\u003cp>“It allows people to remain in their homes who otherwise might be driven out by taxes,” says David Kline, a spokesman for the California Taxpayers Association. “The low-income homeowner is the most at risk of not being able to afford escalating property taxes. It’s the biggest help to those at risk.”\u003c/p>\n\u003cp>But as California home prices reach staggering new highs, the growing disparity between what newer and older homeowners pay on similarly valued property has renewed a problematic question: Is Proposition 13 fair?\u003c/p>\n\u003ch3>Who Benefits From Proposition 13?\u003c/h3>\n\u003cp>Overall, polling suggests Californians like Proposition 13, at least in theory. \u003ca href=\"http://www.ppic.org/publication/proposition-13-40-years-later/\" target=\"_blank\" rel=\"noopener\">About 57 percent\u003c/a> of Californians say Proposition 13 has been mostly good for the state, according to a Public Policy Institute of California survey conducted in March.\u003c/p>\n\u003caside class=\"pullquote alignright\">\u003cem>'This version of property tax relief is very poorly targeted.'\u003ccite>Richard Auxier, Tax Policy Center\u003c/cite>\u003c/em>\u003c/aside>\n\u003cp>But voters are more conflicted about how Proposition 13 treats newer and older homeowners. Only \u003ca href=\"https://calmatters.org/articles/california-proposition-13-approval-rating/\" target=\"_blank\" rel=\"noopener\">41 percent\u003c/a> of Californians believe someone who recently bought a home should pay higher property taxes than someone who bought an identical home decades ago.\u003c/p>\n\u003cp>California isn’t the only place that provides major property tax breaks to longtime homeowners. Many other states limit how much local governments can tax homes, especially for low-income or senior homeowners.\u003c/p>\n\u003cp>But property tax relief in other states is typically more tailored to vulnerable populations than it is here, says Auxier. Proposition 13 provides benefits to anyone fortunate enough to own a home, regardless of their income.\u003c/p>\n\u003cp>“This version of property tax relief is very poorly targeted,” says Auxier. “The problem is that it does nothing but reward homeowners who have been in their homes a long time, no matter who those homeowners are.”\u003c/p>\n\u003cp>Because homeownership is generally correlated with higher incomes, and because Proposition 13 provides more benefits in the long term to more expensive homes, the vast majority of tax relief goes to higher-income households.\u003c/p>\n\u003cp>The nonpartisan Legislative Analyst’s Office \u003ca href=\"https://lao.ca.gov/publications/report/3497#Do_Proposition_13.2019s_Benefits_for_Property_Owners_Vary_With_Income.3F\" target=\"_blank\" rel=\"noopener\">estimates\u003c/a> that roughly 50 percent of the tax savings provided by Proposition 13 goes to households that make over $120,000. Those estimates don’t take into account any tax benefit landlords may pass on to renters, however.\u003c/p>\n\u003cp>Defenders of Proposition 13 say that’s the wrong way of looking at who is benefiting most from the measure.\u003c/p>\n\u003cp>In gentrifying neighborhoods like this one in North Oakland, some of the biggest beneficiaries of Proposition 13 are not higher-income households, but middle-class families who bought decades earlier when houses in the area were much more affordable.\u003c/p>\n\u003cfigure id=\"attachment_11700806\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11700806\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/scenes-garages-800x533.jpg\" alt=\"scenes-garages\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-garages-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The median property value on this North Oakland block was three quarters of a million dollars last year. \u003ccite>(Sean Havey for California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>That’s part of the reason why Johl feels mostly OK about paying higher property taxes than some of her neighbors.\u003c/p>\n\u003cp>“I don’t think it would be fair to ask a family down the street who bought their house 20 years ago to pay more,” says Johl. “Because how would you know if they could afford it?”\u003c/p>\n\u003cp>Auxier concedes that some truly middle-class families from traditionally marginalized communities may benefit from Proposition 13. But he stresses that it’s more an exception to the rule, and to remember the costs associated with that benefit.\u003c/p>\n\u003cp>“Those are tax dollars that aren’t going to education programs or health care programs that could help other parts of those communities that don’t own incredibly expensive homes,” says Auxier.\u003c/p>\n\u003ch3>Certainty for New Homeowners, at a Cost\u003c/h3>\n\u003cp>New homeowners like Johl may be paying way more in property taxes this year than their neighbors. But Proposition 13 provides a great deal of certainty for her going forward. Regardless of how much her home’s value rises, Johl knows her property tax base will not increase more than 2 percent per year.\u003c/p>\n\u003cp>“Prop. 13 provides certainty for every property owner,” says Kline. “So when you buy your property you know exactly what your tax is going to be that year and what it’s going to be for years to come. And you can put those numbers in your budget and know what your bills will be going forward.”\u003c/p>\n\u003cp>Critics say those savings are mitigated by other taxes state and local governments levy to make up for lost property tax revenue. California has some of the highest income and sales taxes in the country.\u003c/p>\n\u003ch3>A Proposition 13 Poster Child (Who Loathes It)\u003c/h3>\n\u003cp>In 1988, Stephanie Nordlinger became a first-time homeowner. She bought a small house in the Los Angeles neighborhood of Baldwin Hills for $170,000.\u003c/p>\n\u003caside class=\"pullquote alignright\">'It’s not fair. It’s clearly not fair.'\u003ccite>Stephanie Nordlinger, homeowner\u003c/cite>\u003c/aside>\n\u003cp>Nordlinger, an attorney, was never a fan of Proposition 13. When it passed, she feared that government services like parks and schools would suffer. But she also thought it was fundamentally wrong that she was paying more in property taxes than richer residents of the city, just because of when she bought.\u003c/p>\n\u003cp>After Nordlinger got her first property tax bill, she sued on the grounds that Proposition 13 violated the 14th Amendment: equal protection under the law.\u003c/p>\n\u003cp>“Someone is paying a lot more than another for getting the same services from government agencies,” says Nordlinger. “It’s not fair. It’s clearly not fair.”\u003c/p>\n\u003cfigure id=\"attachment_11700805\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11700805\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/fairness-stephanie-portrait-800x533.jpg\" alt=\"stephanie\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/fairness-stephanie-portrait-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Stephanie Nordlinger’s challenge to Proposition 13 went all the way to the Supreme Court. She’s pictured here in the backyard of her home. \u003ccite>(Adriene Hill/California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\u003ca href=\"https://www.oyez.org/cases/1991/90-1912\" target=\"_blank\" rel=\"noopener\">Nordlinger’s case\u003c/a> went all the way to the U.S. Supreme Court. While multiple justices expressed concern that Proposition 13 was unwise policy, Nordlinger lost her case.\u003c/p>\n\u003cp>Thirty years later, still at her Baldwin Hills home, Nordlinger is in many ways a poster child for the type of Californian Proposition 13 defenders say the initiative helps the most.\u003c/p>\n\u003cp>She’s a senior citizen on a limited income. Her house is valued around $900,000, but she pays just $3,400 in property taxes. She benefits enormously from Proposition 13.\u003c/p>\n\u003cp>But Nordlinger’s attitude toward the initiative hasn’t changed. She would welcome being taxed at a rate the new homeowners down the street are taxed, if it meant local government services would improve.\u003c/p>\n\u003cp>“When I was a kid, California was on top,” says Nordlinger. “Some parts of California are perfect, and very nice, and as good as anything in the world. But other parts of California are just not what they should be.”\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://www.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">The California Dream series\u003c/a> is a statewide media collaboration of CALmatters, KPBS, KPCC, KQED and Capital Public Radio with support from the Corporation for Public Broadcasting, the James Irvine Foundation and the College Futures Foundation.\u003c/em>\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\u003cp>\u003cimg class=\"aligncenter size-full wp-image-11660142\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/04/CADreamBanner.jpg\" alt=\"\" width=\"1867\" height=\"512\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner.jpg 1867w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-160x44.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-800x219.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1020x280.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1180x324.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-960x263.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-240x66.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-375x103.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-520x143.jpg 520w\" sizes=\"(max-width: 1867px) 100vw, 1867px\">\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11700810/similar-homes-different-taxes-is-proposition-13-fair-to-new-homeowners","authors":["byline_news_11700810"],"programs":["news_72"],"series":["news_21879"],"categories":["news_6266","news_8","news_13"],"tags":["news_20191","news_21577","news_23484","news_24086","news_725","news_137"],"affiliates":["news_18481"],"featImg":"news_11700803","label":"news_72"},"news_11700683":{"type":"posts","id":"news_11700683","meta":{"index":"posts_1591205157","site":"news","id":"11700683","score":null,"sort":[1540407934000]},"guestAuthors":[],"slug":"too-few-homes-is-proposition-13-to-blame-for-californias-housing-shortage","title":"Too Few Homes: Is Proposition 13 to Blame for California's Housing Shortage?","publishDate":1540407934,"format":"image","headTitle":"The California Dream | The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>Michelle Krasowski is the most glass-half-full victim of California’s housing shortage you’ll ever meet.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"http://projects.scpr.org/prop-13/\">The California Dream: The Oakland Block That Proposition 13 Built\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"http://projects.scpr.org/prop-13/\">\u003cimg src=\"https://u.s.kqed.net/2018/10/23/Prop13600.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003cp>Since 1978, Proposition 13 has played an outsized role in who can afford to live in California. Did it save the California dream, or spoil it? To answer that question, we focused on a single block in a middle-class neighborhood in North Oakland.\u003c/p>\n\u003c/aside>\n\u003cp>She has decked out her converted basement apartment on this block in North Oakland like an eclectic bohemian loft. Boutique fabrics and artwork adorn the walls, and craft supplies and a film projector from the 1970s are scattered about the living room.\u003c/p>\n\u003cp>Krasowski loves the neighborhood, which she moved to about a year and a half ago. The friendly neighbors that know each other by name, the old church down the street, the taqueria and pizza place a few blocks away. It fits her.\u003c/p>\n\u003cp>“It’s not as new and shiny as some of the other places that have been converted around the East Bay, and I really like that,” Krasowksi says.\u003c/p>\n\u003cp>But like so many Californians these days, Krasowski doesn’t know how much longer she can afford to stay here. She pays nearly $2,000 a month in rent, which she says is nearly two-thirds of her take-home pay as a librarian for Contra Costa County.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“I feel like it’s the new normal, and actually like a good value for the Bay Area,” says Krasowski, 38, “which is insane.”\u003c/p>\n\u003caside class=\"pullquote alignright\">\u003cem>By one estimate, the state needs to build 1.8 million units over the next seven years just to keep pace with population growth.\u003c/em>\u003c/aside>\n\u003cp>California, and particularly the Bay Area, hasn’t built enough housing to keep up with demand. By one estimate from the California Department of Housing and Community Development, the state needs to build 1.8 million units over the next seven years just to keep pace with population growth. Right now, California isn’t close to building that quickly.\u003c/p>\n\u003cp>There are lots of reasons for the state’s deep housing shortage. You can blame broken state housing laws, high construction costs and recalcitrant “not-in-my-backyard” communities that oppose new building across the state.\u003c/p>\n\u003cp>But experts say some unintended consequences of Proposition 13 help explain why the state doesn’t build housing like it used to.\u003c/p>\n\u003ch3>The Vacant Lot Problem\u003c/h3>\n\u003cp>Just around the corner from Krasowski sits an undeveloped lot, overgrown with weeds and surrounded by a chain-link fence.\u003c/p>\n\u003caside class=\"pullquote alignright\">\u003cem>Oakland, where the average house is now worth $750,000, has more than 3,000 vacant residential lots.\u003c/em>\u003c/aside>\n\u003cp>Brian Smith has lived next door to the empty lot since he bought his house in 2004. It used to be owned by his neighbors two lots down, who had it for decades before selling last year.\u003c/p>\n\u003cp>“We always assumed somebody would develop it at some point, but it’s been sitting here the whole time,” says Smith, who reported the lot to the city after the weeds had grown to near eye level.\u003c/p>\n\u003cp>With houses up the street now fetching million-dollar offers, Smith marveled at how long it took for someone to snatch it up and start building. He knew that land had to be incredibly valuable.\u003c/p>\n\u003cfigure id=\"attachment_11700624\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11700624\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/housing-shortage-empty-lot-800x533.jpg\" alt=\"empty-lot\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">All California properties — even vacant ones — are taxed based on the original purchase price, not their current value. \u003ccite>(Sean Havey for California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>That’s where an unintended consequence of Proposition 13 may be at play. After Proposition 13, all California properties — even vacant ones — are taxed based on the original purchase price, not their current value. That makes it relatively inexpensive to hold onto land, even when the market is hot.\u003c/p>\n\u003cp>“In other markets where Prop. 13 policies aren’t in effect, the taxes on that property would continue to go up with land value,” says Ralph McLaughlin, a housing economist with Veritas Urbis Economics and former chief economist for the real estate website Trulia. “And that incentivizes development, it increases holding costs, it makes it more expensive to hold it vacant.”\u003c/p>\n\u003cp>A report from the nonpartisan Legislative Analyst’s Office found that \u003ca href=\"https://lao.ca.gov/publications/report/3497#Does_Proposition_13_Alter_Property_Owners.2019_Development_Decisions.3F\" target=\"_blank\" rel=\"noopener\">vacant lots in California were less likely to be developed\u003c/a> the longer they were owned, even when compared to similar vacant lots in the same neighborhood. Oakland, where the average house is now worth $750,000, has \u003ca href=\"http://ternercenter.berkeley.edu/uploads/H.Raetz_Vacant_Parcels_Final.pdf\" target=\"_blank\" rel=\"noopener\">more than 3,000 vacant residential lots\u003c/a>.\u003c/p>\n\u003cp>Defenders of Proposition 13 argue that other regulatory barriers to new development — permitting fees and other bureaucratic hurdles that new construction must navigate — are far bigger impediments than Proposition 13.\u003c/p>\n\u003cp>“Most people who own land don’t own land so that someday they can sell it,” says Michael Shires, an associate professor of public policy at Pepperdine University. “They own land because they want to do something with it someday. What prevents them is they can’t get permission for what they want to do.”\u003c/p>\n\u003ch3 class=\"story-subhed\">Diluted Incentives for New Housing\u003c/h3>\n\u003cp>Less than two miles from the vacant lot stands another example of how Proposition 13 could be limiting the supply of new housing in California: a Target store. Next to a Best Buy. Next to a Home Depot. All stretched across a massive parking lot, on 40 acres of some of the priciest real estate in California.\u003c/p>\n\u003cp>For the most part, cities decide what gets built within their borders. In an ideal world, they’d permit construction of what’s needed. So if housing prices got too high, they’d permit more housing, according to Jonathan Zasloff, a professor at UCLA School of Law who specializes in land use issues.\u003c/p>\n\u003cp>But cities have another, more immediate imperative to consider when deciding what gets built — revenue for city coffers.\u003c/p>\n\u003cp>“If you’re a city, you’re going to want to have land uses in your city that provide a big revenue stream for services,” says Zasloff. “And in California, you want enterprises that generate sales taxes, which is basically retail.”\u003c/p>\n\u003cp>Proposition 13 changed how California cities get their money. Before the initiative passed, 90 percent of local government revenue came from property taxes. Today, that share is less than two-thirds — and has been replaced by things like sales taxes and hotel taxes, according to the Legislative Analyst’s Office.\u003c/p>\n\u003cp>Big-box stores also don’t generate the need for expensive things like schools and libraries and parks that accompany new housing. So when a city is deciding between allowing a Target or a new apartment building, the math isn’t so friendly to the apartment building.\u003c/p>\n\u003cp>“If it’s gonna cost the city ‘X’ amount of tax dollars over time to provide services for the [apartment building], versus the tax revenue that it generates, Target is gonna win, hands down,” says McLaughlin, the housing economist.\u003c/p>\n\u003cp>This phenomenon, known in urban planning circles as the “fiscalization of land use,” is more theory than empirically tested truth. And it’s also more descriptive of suburbs than well-established cities like Oakland, which were already mostly built out before Proposition 13 passed.\u003c/p>\n\u003cp>But examples of cities deprioritizing housing in favor of retail and hotels is still quite common. Voters in Brisbane, a small Bay Area suburb south of San Francisco, will have a chance next month to approve a new 2,200-home development on vacant land. A consultant found that if the city decided to build a hotel instead, it would \u003ca href=\"http://www.latimes.com/politics/la-pol-ca-small-city-controls-big-housing-project-20170728-story.html\" target=\"_blank\" rel=\"noopener\">net $8 million more\u003c/a> annually in revenue.\u003c/p>\n\u003ch3 class=\"story-subhed\">Large Fees on New Development\u003c/h3>\n\u003cp>At the corner of Broadway and 17th Street, the skeleton of a high-rise apartment building extends into downtown Oakland’s skyline. It’s one of two high-rises going up in the area amid a construction boom all over the city.\u003c/p>\n\u003cp>When those new housing developments come online, they’ll need additional infrastructure to serve new residents. Schools and roads, parks and police, fire and public transportation.\u003c/p>\n\u003caside class=\"pullquote alignright\">\u003cem>'It’s not really a buyer’s market right now.'\u003c/em>\u003cbr>\n\u003cem>\u003ccite>Michelle Krasowski, North Oakland resident\u003c/cite>\u003c/em>\u003c/aside>\n\u003cp>Before Proposition 13, a good deal of that infrastructure was paid for with property taxes. After Proposition 13, and increasingly in recent years, cities have levied high “impact” fees on developers to pay for those costs.\u003c/p>\n\u003cp>Oakland currently levies a fee of at least $10,000 per unit, up to a max of $28,000 per unit. That money goes toward a fund for subsidized, below-market-rate housing. Critics of impact fees say those costs get passed onto renters or future homeowners, and only inflate housing prices.\u003c/p>\n\u003cp>And the fees in Oakland are low, at least compared to other cities.\u003c/p>\n\u003cp>“So the problem is if a fee is set too high, you could cause construction to slow down,” says Darin Ranelletti, policy director for housing security for Oakland. “So you’re contributing to the housing shortage.”\u003c/p>\n\u003cp>The city of Irvine in Orange County, on average, charges more than $80,000 in impact fees on new single-family homes, according to an \u003ca href=\"https://ternercenter.berkeley.edu/blog/it-all-adds-up-the-cost-of-housing-development-fees-in-seven-california-cit\" target=\"_blank\" rel=\"noopener\">analysis by the UC Berkeley Terner Center for Housing Innovation\u003c/a>. The city of Fremont, in the Bay Area, charges more than $140,000 per home.\u003c/p>\n\u003cp>Back in North Oakland, Michelle Krasowksi — already stretching to pay her rent — has started looking into whether she can tap some affordable-housing dollars for help. One day she wants to buy a home. She even subscribes to some real estate newsletters. But she knows that realistically, that won’t happen for some time.\u003c/p>\n\u003cp>“It’s not really a buyer’s market right now,” Krasowski says, smiling.\u003c/p>\n\u003cp>Meanwhile, her monthly rent of nearly $2,000 is more than what some of her neighbors pay a year in property taxes.\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://www.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">The California Dream series\u003c/a> is a statewide media collaboration of CALmatters, KPBS, KPCC, KQED and Capital Public Radio with support from the Corporation for Public Broadcasting, the James Irvine Foundation and the College Futures Foundation.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cimg class=\"aligncenter size-full wp-image-11660142\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/04/CADreamBanner.jpg\" alt=\"\" width=\"1867\" height=\"512\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner.jpg 1867w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-160x44.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-800x219.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1020x280.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1180x324.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-960x263.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-240x66.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-375x103.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-520x143.jpg 520w\" sizes=\"(max-width: 1867px) 100vw, 1867px\">\u003c/p>\n\n","blocks":[],"excerpt":"Oakland has more than 3,000 vacant residential lots. Some say it's because Proposition 13 has made it too expensive to build. Defenders say other regulations are far bigger barriers to construction.","status":"publish","parent":0,"modified":1540408051,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":42,"wordCount":1732},"headData":{"title":"Too Few Homes: Is Proposition 13 to Blame for California's Housing Shortage? | KQED","description":"Oakland has more than 3,000 vacant residential lots. Some say it's because Proposition 13 has made it too expensive to build. Defenders say other regulations are far bigger barriers to construction.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"11700683 https://ww2.kqed.org/news/?p=11700683","disqusUrl":"https://ww2.kqed.org/news/2018/10/24/too-few-homes-is-proposition-13-to-blame-for-californias-housing-shortage/","disqusTitle":"Too Few Homes: Is Proposition 13 to Blame for California's Housing Shortage?","nprByline":"\u003ca href=\"https://calmatters.org/articles/author/matt-levin/\" rel=\"noopener\" target=\"_blank\">Matt Levin/CALmatters\u003c/a>","path":"/news/11700683/too-few-homes-is-proposition-13-to-blame-for-californias-housing-shortage","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Michelle Krasowski is the most glass-half-full victim of California’s housing shortage you’ll ever meet.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"http://projects.scpr.org/prop-13/\">The California Dream: The Oakland Block That Proposition 13 Built\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"http://projects.scpr.org/prop-13/\">\u003cimg src=\"https://u.s.kqed.net/2018/10/23/Prop13600.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003cp>Since 1978, Proposition 13 has played an outsized role in who can afford to live in California. Did it save the California dream, or spoil it? To answer that question, we focused on a single block in a middle-class neighborhood in North Oakland.\u003c/p>\n\u003c/aside>\n\u003cp>She has decked out her converted basement apartment on this block in North Oakland like an eclectic bohemian loft. Boutique fabrics and artwork adorn the walls, and craft supplies and a film projector from the 1970s are scattered about the living room.\u003c/p>\n\u003cp>Krasowski loves the neighborhood, which she moved to about a year and a half ago. The friendly neighbors that know each other by name, the old church down the street, the taqueria and pizza place a few blocks away. It fits her.\u003c/p>\n\u003cp>“It’s not as new and shiny as some of the other places that have been converted around the East Bay, and I really like that,” Krasowksi says.\u003c/p>\n\u003cp>But like so many Californians these days, Krasowski doesn’t know how much longer she can afford to stay here. She pays nearly $2,000 a month in rent, which she says is nearly two-thirds of her take-home pay as a librarian for Contra Costa County.\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>“I feel like it’s the new normal, and actually like a good value for the Bay Area,” says Krasowski, 38, “which is insane.”\u003c/p>\n\u003caside class=\"pullquote alignright\">\u003cem>By one estimate, the state needs to build 1.8 million units over the next seven years just to keep pace with population growth.\u003c/em>\u003c/aside>\n\u003cp>California, and particularly the Bay Area, hasn’t built enough housing to keep up with demand. By one estimate from the California Department of Housing and Community Development, the state needs to build 1.8 million units over the next seven years just to keep pace with population growth. Right now, California isn’t close to building that quickly.\u003c/p>\n\u003cp>There are lots of reasons for the state’s deep housing shortage. You can blame broken state housing laws, high construction costs and recalcitrant “not-in-my-backyard” communities that oppose new building across the state.\u003c/p>\n\u003cp>But experts say some unintended consequences of Proposition 13 help explain why the state doesn’t build housing like it used to.\u003c/p>\n\u003ch3>The Vacant Lot Problem\u003c/h3>\n\u003cp>Just around the corner from Krasowski sits an undeveloped lot, overgrown with weeds and surrounded by a chain-link fence.\u003c/p>\n\u003caside class=\"pullquote alignright\">\u003cem>Oakland, where the average house is now worth $750,000, has more than 3,000 vacant residential lots.\u003c/em>\u003c/aside>\n\u003cp>Brian Smith has lived next door to the empty lot since he bought his house in 2004. It used to be owned by his neighbors two lots down, who had it for decades before selling last year.\u003c/p>\n\u003cp>“We always assumed somebody would develop it at some point, but it’s been sitting here the whole time,” says Smith, who reported the lot to the city after the weeds had grown to near eye level.\u003c/p>\n\u003cp>With houses up the street now fetching million-dollar offers, Smith marveled at how long it took for someone to snatch it up and start building. He knew that land had to be incredibly valuable.\u003c/p>\n\u003cfigure id=\"attachment_11700624\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11700624\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/housing-shortage-empty-lot-800x533.jpg\" alt=\"empty-lot\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/housing-shortage-empty-lot-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">All California properties — even vacant ones — are taxed based on the original purchase price, not their current value. \u003ccite>(Sean Havey for California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>That’s where an unintended consequence of Proposition 13 may be at play. After Proposition 13, all California properties — even vacant ones — are taxed based on the original purchase price, not their current value. That makes it relatively inexpensive to hold onto land, even when the market is hot.\u003c/p>\n\u003cp>“In other markets where Prop. 13 policies aren’t in effect, the taxes on that property would continue to go up with land value,” says Ralph McLaughlin, a housing economist with Veritas Urbis Economics and former chief economist for the real estate website Trulia. “And that incentivizes development, it increases holding costs, it makes it more expensive to hold it vacant.”\u003c/p>\n\u003cp>A report from the nonpartisan Legislative Analyst’s Office found that \u003ca href=\"https://lao.ca.gov/publications/report/3497#Does_Proposition_13_Alter_Property_Owners.2019_Development_Decisions.3F\" target=\"_blank\" rel=\"noopener\">vacant lots in California were less likely to be developed\u003c/a> the longer they were owned, even when compared to similar vacant lots in the same neighborhood. Oakland, where the average house is now worth $750,000, has \u003ca href=\"http://ternercenter.berkeley.edu/uploads/H.Raetz_Vacant_Parcels_Final.pdf\" target=\"_blank\" rel=\"noopener\">more than 3,000 vacant residential lots\u003c/a>.\u003c/p>\n\u003cp>Defenders of Proposition 13 argue that other regulatory barriers to new development — permitting fees and other bureaucratic hurdles that new construction must navigate — are far bigger impediments than Proposition 13.\u003c/p>\n\u003cp>“Most people who own land don’t own land so that someday they can sell it,” says Michael Shires, an associate professor of public policy at Pepperdine University. “They own land because they want to do something with it someday. What prevents them is they can’t get permission for what they want to do.”\u003c/p>\n\u003ch3 class=\"story-subhed\">Diluted Incentives for New Housing\u003c/h3>\n\u003cp>Less than two miles from the vacant lot stands another example of how Proposition 13 could be limiting the supply of new housing in California: a Target store. Next to a Best Buy. Next to a Home Depot. All stretched across a massive parking lot, on 40 acres of some of the priciest real estate in California.\u003c/p>\n\u003cp>For the most part, cities decide what gets built within their borders. In an ideal world, they’d permit construction of what’s needed. So if housing prices got too high, they’d permit more housing, according to Jonathan Zasloff, a professor at UCLA School of Law who specializes in land use issues.\u003c/p>\n\u003cp>But cities have another, more immediate imperative to consider when deciding what gets built — revenue for city coffers.\u003c/p>\n\u003cp>“If you’re a city, you’re going to want to have land uses in your city that provide a big revenue stream for services,” says Zasloff. “And in California, you want enterprises that generate sales taxes, which is basically retail.”\u003c/p>\n\u003cp>Proposition 13 changed how California cities get their money. Before the initiative passed, 90 percent of local government revenue came from property taxes. Today, that share is less than two-thirds — and has been replaced by things like sales taxes and hotel taxes, according to the Legislative Analyst’s Office.\u003c/p>\n\u003cp>Big-box stores also don’t generate the need for expensive things like schools and libraries and parks that accompany new housing. So when a city is deciding between allowing a Target or a new apartment building, the math isn’t so friendly to the apartment building.\u003c/p>\n\u003cp>“If it’s gonna cost the city ‘X’ amount of tax dollars over time to provide services for the [apartment building], versus the tax revenue that it generates, Target is gonna win, hands down,” says McLaughlin, the housing economist.\u003c/p>\n\u003cp>This phenomenon, known in urban planning circles as the “fiscalization of land use,” is more theory than empirically tested truth. And it’s also more descriptive of suburbs than well-established cities like Oakland, which were already mostly built out before Proposition 13 passed.\u003c/p>\n\u003cp>But examples of cities deprioritizing housing in favor of retail and hotels is still quite common. Voters in Brisbane, a small Bay Area suburb south of San Francisco, will have a chance next month to approve a new 2,200-home development on vacant land. A consultant found that if the city decided to build a hotel instead, it would \u003ca href=\"http://www.latimes.com/politics/la-pol-ca-small-city-controls-big-housing-project-20170728-story.html\" target=\"_blank\" rel=\"noopener\">net $8 million more\u003c/a> annually in revenue.\u003c/p>\n\u003ch3 class=\"story-subhed\">Large Fees on New Development\u003c/h3>\n\u003cp>At the corner of Broadway and 17th Street, the skeleton of a high-rise apartment building extends into downtown Oakland’s skyline. It’s one of two high-rises going up in the area amid a construction boom all over the city.\u003c/p>\n\u003cp>When those new housing developments come online, they’ll need additional infrastructure to serve new residents. Schools and roads, parks and police, fire and public transportation.\u003c/p>\n\u003caside class=\"pullquote alignright\">\u003cem>'It’s not really a buyer’s market right now.'\u003c/em>\u003cbr>\n\u003cem>\u003ccite>Michelle Krasowski, North Oakland resident\u003c/cite>\u003c/em>\u003c/aside>\n\u003cp>Before Proposition 13, a good deal of that infrastructure was paid for with property taxes. After Proposition 13, and increasingly in recent years, cities have levied high “impact” fees on developers to pay for those costs.\u003c/p>\n\u003cp>Oakland currently levies a fee of at least $10,000 per unit, up to a max of $28,000 per unit. That money goes toward a fund for subsidized, below-market-rate housing. Critics of impact fees say those costs get passed onto renters or future homeowners, and only inflate housing prices.\u003c/p>\n\u003cp>And the fees in Oakland are low, at least compared to other cities.\u003c/p>\n\u003cp>“So the problem is if a fee is set too high, you could cause construction to slow down,” says Darin Ranelletti, policy director for housing security for Oakland. “So you’re contributing to the housing shortage.”\u003c/p>\n\u003cp>The city of Irvine in Orange County, on average, charges more than $80,000 in impact fees on new single-family homes, according to an \u003ca href=\"https://ternercenter.berkeley.edu/blog/it-all-adds-up-the-cost-of-housing-development-fees-in-seven-california-cit\" target=\"_blank\" rel=\"noopener\">analysis by the UC Berkeley Terner Center for Housing Innovation\u003c/a>. The city of Fremont, in the Bay Area, charges more than $140,000 per home.\u003c/p>\n\u003cp>Back in North Oakland, Michelle Krasowksi — already stretching to pay her rent — has started looking into whether she can tap some affordable-housing dollars for help. One day she wants to buy a home. She even subscribes to some real estate newsletters. But she knows that realistically, that won’t happen for some time.\u003c/p>\n\u003cp>“It’s not really a buyer’s market right now,” Krasowski says, smiling.\u003c/p>\n\u003cp>Meanwhile, her monthly rent of nearly $2,000 is more than what some of her neighbors pay a year in property taxes.\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://www.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">The California Dream series\u003c/a> is a statewide media collaboration of CALmatters, KPBS, KPCC, KQED and Capital Public Radio with support from the Corporation for Public Broadcasting, the James Irvine Foundation and the College Futures Foundation.\u003c/em>\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\u003cp>\u003cimg class=\"aligncenter size-full wp-image-11660142\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/04/CADreamBanner.jpg\" alt=\"\" width=\"1867\" height=\"512\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner.jpg 1867w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-160x44.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-800x219.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1020x280.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1180x324.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-960x263.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-240x66.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-375x103.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-520x143.jpg 520w\" sizes=\"(max-width: 1867px) 100vw, 1867px\">\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11700683/too-few-homes-is-proposition-13-to-blame-for-californias-housing-shortage","authors":["byline_news_11700683"],"programs":["news_72"],"series":["news_21879"],"categories":["news_6266","news_8","news_13"],"tags":["news_20191","news_21577","news_18","news_23484","news_725"],"affiliates":["news_18481"],"featImg":"news_11700625","label":"news_72"},"news_11700626":{"type":"posts","id":"news_11700626","meta":{"index":"posts_1591205157","site":"news","id":"11700626","score":null,"sort":[1540397597000]},"guestAuthors":[],"slug":"proposition-5-renews-californias-debate-over-property-taxes","title":"Proposition 5 Renews California's Debate Over Property Taxes","publishDate":1540397597,"format":"image","headTitle":"The California Dream | The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>Kenneth Wilkins is walking down the block in North Oakland where he bought a home 42 years ago. As he strolls up to the front of his house, he talks about the single-family home he purchased in 1976.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"http://projects.scpr.org/prop-13/\">The California Dream: The Oakland Block That Proposition 13 Built\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"http://projects.scpr.org/prop-13/\">\u003cimg src=\"https://u.s.kqed.net/2018/10/23/Prop13600.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003cp>Since 1978, Proposition 13 has played an outsized role in who can afford to live in California. Did it save the California dream, or spoil it? To answer that question, we focused on a single block in a middle-class neighborhood in North Oakland.\u003c/p>\n\u003c/aside>\n\u003cp>“Actually this house cost less than this car,” Wilkins says, pointing to a modest white Toyota parked in front of the house.\u003c/p>\n\u003cp>“This car cost $21,000, I think. And this house was less than that. I never dreamed that a house would sell for over a million in this neighborhood. But they do.”\u003c/p>\n\u003cp>Two years after Wilkins became a homeowner, California voters overwhelmingly passed Proposition 13, rolling back property taxes and putting a strict limit on annual increases. Wilkins isn’t sure, but he thinks he voted for it.\u003c/p>\n\u003cp>“But still, you know, even with Prop. 13 your taxes go up every year,” he says. “I mean it is limited, but over time it adds up, especially for people who are on fixed incomes.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>There is no question homeowners like Wilkins have benefited tremendously from Proposition 13.\u003c/p>\n\u003cp>According to a \u003ca href=\"https://lao.ca.gov/publications/report/3497#Are_Similar_Property_Owners_Taxed_Differently_Under_Proposition.A013.3F\" target=\"_blank\" rel=\"noopener\">2016 analysis\u003c/a> from the Legislative Analyst’s Office (LAO), Proposition 13 has led to vastly different property tax assessments within counties, or even blocks, depending on how long the home has been owned.\u003c/p>\n\u003cp>Our \u003ca href=\"http://projects.scpr.org/prop-13/\" target=\"_blank\" rel=\"noopener\">own analysis of real estate data from Zillow\u003c/a> found significant disparities across the state as well. On Wilkins’ block alone, we found that if everyone was taxed at the current value of their home, the block would have paid an additional $130,000 in property tax last year.\u003c/p>\n\u003cp>Wilkins’ tax bill, for example, is much lower than a nearby neighbor's in a similar home who bought more recently.\u003c/p>\n\u003cp>That kind of disparity can be found even among homeowners with similar ages, incomes and overall wealth.\u003c/p>\n\u003cfigure id=\"attachment_11700620\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11700620 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/scenes-power-lines-overhead-800x533.jpg\" alt=\"power-lines\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The share of properties sold in California each year has declined since Proposition 13 passed. \u003ccite>(Sean Havey for California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“Looking at 45- to 55-year-old homeowners with homes worth $575,000 to $625,000 and incomes of $80,000 to $90,000, property tax payments in 2014 ranged from $1,350 to $7,500,” the LAO report found in examining the San Francisco Bay Area.\u003c/p>\n\u003cp>That difference is based mostly on how long a property has been “protected” by annual tax increases by Proposition 13.\u003c/p>\n\u003cp>An unintended consequence is that the longer people benefit from lower property taxes, the harder it can be to afford a new home with taxes based on its new assessed value.\u003c/p>\n\u003cp>Indeed, the LAO report found that “the share of properties sold each year in California has been on the decline since the passage of Proposition 13.” While 16 percent of California properties were sold in 1977-78, this share declined to only 5 percent in 2014-15.\u003c/p>\n\u003ch3 class=\"story-subhed\">Expanding Proposition 13\u003c/h3>\n\u003cp>California voters have modified Proposition 13 twice since they voted it in.\u003c/p>\n\u003cp>In 1986, voters passed \u003ca href=\"http://ca-contracostacounty.civicplus.com/DocumentCenter/View/817/Proposition-60?bidId=\" target=\"_blank\" rel=\"noopener\">Proposition 60\u003c/a>. The measure allowed homeowners over the age of 55 to transfer the assessed value of their present home to a replacement home. There are conditions: The new home needs to be located in the same county and it has to be of equal or lesser value than the original home.\u003c/p>\n\u003cp>Two years later, voters amended Proposition 13 again. \u003ca href=\"http://www.boe.ca.gov/proptaxes/prop60-90_55over.htm\" target=\"_blank\" rel=\"noopener\">Proposition 90\u003c/a> expanded on what Proposition 60 allowed, letting eligible homeowners keep their lower tax assessment if they buy a home of equal or lower value in another county, as long as county supervisors allowed it. Currently, about 11 counties, including Los Angeles, Orange, San Diego and Alameda, permit that lower assessment to be carried into their county.\u003c/p>\n\u003cp>What’s allowed under Proposition 13 is back on the ballot again this November. \u003ca href=\"https://lao.ca.gov/BallotAnalysis/Proposition?number=5&year=2018\" target=\"_blank\" rel=\"noopener\">Proposition 5 seeks to expand Proposition 13\u003c/a> even farther and eliminate the requirement that county officials be on board before a lower tax assessment transfers across county lines. Under Proposition 5, that portability would extend to all 58 counties in California, whether or not local elected officials want it.\u003c/p>\n\u003cp>Under Proposition 5, a \u003ca href=\"https://lao.ca.gov/BallotAnalysis/Proposition?number=5&year=2018\" target=\"_blank\" rel=\"noopener\">formula would be used to calculate the new property\u003c/a> tax based on the difference between the current assessed values of the old and new home.\u003c/p>\n\u003cp>It’s an idea that appeals to real estate agents like Linda Eisenman, whose territory is primarily north Orange County, including Brea, Placentia, Yorba Linda and Fullerton. According to \u003ca href=\"http://cal-access.sos.ca.gov/Campaign/Committees/Detail.aspx?id=1400190&session=2017\" target=\"_blank\" rel=\"noopener\">state campaign finance reports\u003c/a>, the real estate industry has pumped more than $7 million into supporting Proposition 5.\u003c/p>\n\u003cp>[2018-prop prop=5]\u003c/p>\n\u003cp>Proposition 5 “would allow those people who have been in their homes for many years and have been able to benefit from Prop. 13, it would help them be able to transfer their property tax bases to the next property,” Eisenman says, adding it would be a huge benefit to baby boomers who want to move into a smaller place.\u003c/p>\n\u003cp>“It’s also going to help younger people because it’s going to get some of the baby boomers who are staying put … out of their homes, freeing up their existing home for future homebuyers,” she says.\u003c/p>\n\u003cp>And not incidentally, more homes bought and sold mean more commissions for real estate agents.\u003c/p>\n\u003ch3 class=\"story-subhed\">Renewing the debate\u003c/h3>\n\u003cp>The measure has plenty of detractors who think Proposition 13 has been bad for California, and Proposition 5 does nothing to address that.\u003c/p>\n\u003cp>“This new measure is the son of Prop. 13,” says San Francisco Assemblyman David Chiu, who strongly opposes Proposition 5.\u003c/p>\n\u003caside class=\"pullquote alignright\">'Supply is the real problem.'\u003cbr>\n\u003ccite>Alex Creel, California Association of Realtors\u003c/cite>\u003c/aside>\n\u003cp>The LAO reports that if Proposition 5 is approved, schools and local governments would lose property tax revenue — over $100 million each per year at first, growing over time to $1 billion each per year in today’s dollars.\u003c/p>\n\u003cp>However, the state would have to replace the $1 billion lost in revenue to schools to make them whole. So cities, counties and special districts would take the brunt of the financial hit if Proposition 5 passes, leaving them less money for everything from public safety to health care and libraries.\u003c/p>\n\u003cp>“This is simply going to allow longtime, wealthier homeowners to continue to receive additional tax breaks while doing nothing for millions of Californians who are struggling in our housing crisis,” Chiu said.\u003c/p>\n\u003cfigure id=\"attachment_11700621\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11700621 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/scenes-three-plants-800x533.jpg\" alt=\"three-plants\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">If Proposition 5 is approved, schools and local governments would lose significant property tax revenue. \u003ccite>(Sean Havey for California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>This includes people like Bryan Blythe. The 36-year-old renter has lived in a 1,000-square-foot apartment in San Francisco for nine years, all the while benefiting from the city’s rent control law. Now Blythe and his partner are thinking about buying a home in San Francisco or Oakland, if they can afford it.\u003c/p>\n\u003cp>“We grew up in the Bay Area,” Blythe says. “We both have family who are still here. And all of our friends are here. Our jobs are here. We don't have any real desire to leave. We'd love to stay if it was possible financially.”\u003c/p>\n\u003cp>Blythe says he and his partner earn good salaries, and they’ve saved for a down payment. But he says that buying instead of renting will triple their monthly costs for housing.\u003c/p>\n\u003cp>“Mortgage, property taxes, homeowners insurance, HOA fees — it’s gonna be a huge jump for us,” he says.\u003c/p>\n\u003cp>There’s really nothing in Proposition 5 to help wannabe homeowners like Blythe afford their first home.\u003c/p>\n\u003cp>Backers of Proposition 5 say it will help first-time buyers by freeing up homes sold by aging baby boomers.\u003c/p>\n\u003cp>“If you sort of envision housing as a kind of ladder, you know the first rung of the ladder is rental housing,” says Alex Creel, senior vice president for government affairs with the California Association of Realtors, the main backer of Proposition 5. “As you move up the ladder, then pretty soon you’re into home ownership.”\u003c/p>\n\u003cp>So-called empty nesters might want to downsize and move into a smaller place, but Creel says that \"under the current property tax rules you can’t do that. So you’re stuck and people are staying put.”\u003c/p>\n\u003cp>Backers of Proposition 5 hope to convince voters that by giving older homeowners economic incentive to move, young families and first-time homebuyers will have more supply from which to choose.\u003c/p>\n\u003cp>But as almost everyone acknowledges, the real impediment to purchasing a home is cost, which is largely driven by supply and demand.\u003c/p>\n\u003cp>“Supply is the real problem,” says Creel. While acknowledging that Proposition 5 does nothing to increase supply, “it moves us in the direction of making more housing available to families who need it.”\u003c/p>\n\u003cp>Even if Proposition 5 passes, don’t count on Kenneth Wilkins’ home to be on the market anytime soon.\u003c/p>\n\u003cp>“I don’t think we’ll sell the property,” he says. “I’d like to live here until I’m 99 or so,” he jokes. “Then I’d like to pass it on to the grandkids and their grandkids.”\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://www.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">The California Dream series\u003c/a> is a statewide media collaboration of CALmatters, KPBS, KPCC, KQED and Capital Public Radio with support from the Corporation for Public Broadcasting, the James Irvine Foundation and the College Futures Foundation.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cimg class=\"aligncenter size-full wp-image-11660142\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/04/CADreamBanner.jpg\" alt=\"\" width=\"1867\" height=\"512\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner.jpg 1867w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-160x44.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-800x219.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1020x280.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1180x324.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-960x263.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-240x66.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-375x103.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-520x143.jpg 520w\" sizes=\"(max-width: 1867px) 100vw, 1867px\">\u003c/p>\n\n","blocks":[],"excerpt":"The new measure once again revisits the 1978 law - the infamous Proposition 13 - that placed limits on annual property tax increases.","status":"publish","parent":0,"modified":1541361574,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":47,"wordCount":1662},"headData":{"title":"Proposition 5 Renews California's Debate Over Property Taxes | KQED","description":"The new measure once again revisits the 1978 law - the infamous Proposition 13 - that placed limits on annual property tax increases.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"11700626 https://ww2.kqed.org/news/?p=11700626","disqusUrl":"https://ww2.kqed.org/news/2018/10/24/proposition-5-renews-californias-debate-over-property-taxes/","disqusTitle":"Proposition 5 Renews California's Debate Over Property Taxes","audioUrl":"https://www.kqed.org/.stream/anon/radio/RDnews/2018/10/ShaferProp5.mp3","audioTrackLength":255,"path":"/news/11700626/proposition-5-renews-californias-debate-over-property-taxes","audioDuration":262000,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Kenneth Wilkins is walking down the block in North Oakland where he bought a home 42 years ago. As he strolls up to the front of his house, he talks about the single-family home he purchased in 1976.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"http://projects.scpr.org/prop-13/\">The California Dream: The Oakland Block That Proposition 13 Built\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"http://projects.scpr.org/prop-13/\">\u003cimg src=\"https://u.s.kqed.net/2018/10/23/Prop13600.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003cp>Since 1978, Proposition 13 has played an outsized role in who can afford to live in California. Did it save the California dream, or spoil it? To answer that question, we focused on a single block in a middle-class neighborhood in North Oakland.\u003c/p>\n\u003c/aside>\n\u003cp>“Actually this house cost less than this car,” Wilkins says, pointing to a modest white Toyota parked in front of the house.\u003c/p>\n\u003cp>“This car cost $21,000, I think. And this house was less than that. I never dreamed that a house would sell for over a million in this neighborhood. But they do.”\u003c/p>\n\u003cp>Two years after Wilkins became a homeowner, California voters overwhelmingly passed Proposition 13, rolling back property taxes and putting a strict limit on annual increases. Wilkins isn’t sure, but he thinks he voted for it.\u003c/p>\n\u003cp>“But still, you know, even with Prop. 13 your taxes go up every year,” he says. “I mean it is limited, but over time it adds up, especially for people who are on fixed incomes.”\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>There is no question homeowners like Wilkins have benefited tremendously from Proposition 13.\u003c/p>\n\u003cp>According to a \u003ca href=\"https://lao.ca.gov/publications/report/3497#Are_Similar_Property_Owners_Taxed_Differently_Under_Proposition.A013.3F\" target=\"_blank\" rel=\"noopener\">2016 analysis\u003c/a> from the Legislative Analyst’s Office (LAO), Proposition 13 has led to vastly different property tax assessments within counties, or even blocks, depending on how long the home has been owned.\u003c/p>\n\u003cp>Our \u003ca href=\"http://projects.scpr.org/prop-13/\" target=\"_blank\" rel=\"noopener\">own analysis of real estate data from Zillow\u003c/a> found significant disparities across the state as well. On Wilkins’ block alone, we found that if everyone was taxed at the current value of their home, the block would have paid an additional $130,000 in property tax last year.\u003c/p>\n\u003cp>Wilkins’ tax bill, for example, is much lower than a nearby neighbor's in a similar home who bought more recently.\u003c/p>\n\u003cp>That kind of disparity can be found even among homeowners with similar ages, incomes and overall wealth.\u003c/p>\n\u003cfigure id=\"attachment_11700620\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11700620 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/scenes-power-lines-overhead-800x533.jpg\" alt=\"power-lines\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-power-lines-overhead-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The share of properties sold in California each year has declined since Proposition 13 passed. \u003ccite>(Sean Havey for California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“Looking at 45- to 55-year-old homeowners with homes worth $575,000 to $625,000 and incomes of $80,000 to $90,000, property tax payments in 2014 ranged from $1,350 to $7,500,” the LAO report found in examining the San Francisco Bay Area.\u003c/p>\n\u003cp>That difference is based mostly on how long a property has been “protected” by annual tax increases by Proposition 13.\u003c/p>\n\u003cp>An unintended consequence is that the longer people benefit from lower property taxes, the harder it can be to afford a new home with taxes based on its new assessed value.\u003c/p>\n\u003cp>Indeed, the LAO report found that “the share of properties sold each year in California has been on the decline since the passage of Proposition 13.” While 16 percent of California properties were sold in 1977-78, this share declined to only 5 percent in 2014-15.\u003c/p>\n\u003ch3 class=\"story-subhed\">Expanding Proposition 13\u003c/h3>\n\u003cp>California voters have modified Proposition 13 twice since they voted it in.\u003c/p>\n\u003cp>In 1986, voters passed \u003ca href=\"http://ca-contracostacounty.civicplus.com/DocumentCenter/View/817/Proposition-60?bidId=\" target=\"_blank\" rel=\"noopener\">Proposition 60\u003c/a>. The measure allowed homeowners over the age of 55 to transfer the assessed value of their present home to a replacement home. There are conditions: The new home needs to be located in the same county and it has to be of equal or lesser value than the original home.\u003c/p>\n\u003cp>Two years later, voters amended Proposition 13 again. \u003ca href=\"http://www.boe.ca.gov/proptaxes/prop60-90_55over.htm\" target=\"_blank\" rel=\"noopener\">Proposition 90\u003c/a> expanded on what Proposition 60 allowed, letting eligible homeowners keep their lower tax assessment if they buy a home of equal or lower value in another county, as long as county supervisors allowed it. Currently, about 11 counties, including Los Angeles, Orange, San Diego and Alameda, permit that lower assessment to be carried into their county.\u003c/p>\n\u003cp>What’s allowed under Proposition 13 is back on the ballot again this November. \u003ca href=\"https://lao.ca.gov/BallotAnalysis/Proposition?number=5&year=2018\" target=\"_blank\" rel=\"noopener\">Proposition 5 seeks to expand Proposition 13\u003c/a> even farther and eliminate the requirement that county officials be on board before a lower tax assessment transfers across county lines. Under Proposition 5, that portability would extend to all 58 counties in California, whether or not local elected officials want it.\u003c/p>\n\u003cp>Under Proposition 5, a \u003ca href=\"https://lao.ca.gov/BallotAnalysis/Proposition?number=5&year=2018\" target=\"_blank\" rel=\"noopener\">formula would be used to calculate the new property\u003c/a> tax based on the difference between the current assessed values of the old and new home.\u003c/p>\n\u003cp>It’s an idea that appeals to real estate agents like Linda Eisenman, whose territory is primarily north Orange County, including Brea, Placentia, Yorba Linda and Fullerton. According to \u003ca href=\"http://cal-access.sos.ca.gov/Campaign/Committees/Detail.aspx?id=1400190&session=2017\" target=\"_blank\" rel=\"noopener\">state campaign finance reports\u003c/a>, the real estate industry has pumped more than $7 million into supporting Proposition 5.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Proposition 5 “would allow those people who have been in their homes for many years and have been able to benefit from Prop. 13, it would help them be able to transfer their property tax bases to the next property,” Eisenman says, adding it would be a huge benefit to baby boomers who want to move into a smaller place.\u003c/p>\n\u003cp>“It’s also going to help younger people because it’s going to get some of the baby boomers who are staying put … out of their homes, freeing up their existing home for future homebuyers,” she says.\u003c/p>\n\u003cp>And not incidentally, more homes bought and sold mean more commissions for real estate agents.\u003c/p>\n\u003ch3 class=\"story-subhed\">Renewing the debate\u003c/h3>\n\u003cp>The measure has plenty of detractors who think Proposition 13 has been bad for California, and Proposition 5 does nothing to address that.\u003c/p>\n\u003cp>“This new measure is the son of Prop. 13,” says San Francisco Assemblyman David Chiu, who strongly opposes Proposition 5.\u003c/p>\n\u003caside class=\"pullquote alignright\">'Supply is the real problem.'\u003cbr>\n\u003ccite>Alex Creel, California Association of Realtors\u003c/cite>\u003c/aside>\n\u003cp>The LAO reports that if Proposition 5 is approved, schools and local governments would lose property tax revenue — over $100 million each per year at first, growing over time to $1 billion each per year in today’s dollars.\u003c/p>\n\u003cp>However, the state would have to replace the $1 billion lost in revenue to schools to make them whole. So cities, counties and special districts would take the brunt of the financial hit if Proposition 5 passes, leaving them less money for everything from public safety to health care and libraries.\u003c/p>\n\u003cp>“This is simply going to allow longtime, wealthier homeowners to continue to receive additional tax breaks while doing nothing for millions of Californians who are struggling in our housing crisis,” Chiu said.\u003c/p>\n\u003cfigure id=\"attachment_11700621\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11700621 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/scenes-three-plants-800x533.jpg\" alt=\"three-plants\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/scenes-three-plants-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">If Proposition 5 is approved, schools and local governments would lose significant property tax revenue. \u003ccite>(Sean Havey for California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>This includes people like Bryan Blythe. The 36-year-old renter has lived in a 1,000-square-foot apartment in San Francisco for nine years, all the while benefiting from the city’s rent control law. Now Blythe and his partner are thinking about buying a home in San Francisco or Oakland, if they can afford it.\u003c/p>\n\u003cp>“We grew up in the Bay Area,” Blythe says. “We both have family who are still here. And all of our friends are here. Our jobs are here. We don't have any real desire to leave. We'd love to stay if it was possible financially.”\u003c/p>\n\u003cp>Blythe says he and his partner earn good salaries, and they’ve saved for a down payment. But he says that buying instead of renting will triple their monthly costs for housing.\u003c/p>\n\u003cp>“Mortgage, property taxes, homeowners insurance, HOA fees — it’s gonna be a huge jump for us,” he says.\u003c/p>\n\u003cp>There’s really nothing in Proposition 5 to help wannabe homeowners like Blythe afford their first home.\u003c/p>\n\u003cp>Backers of Proposition 5 say it will help first-time buyers by freeing up homes sold by aging baby boomers.\u003c/p>\n\u003cp>“If you sort of envision housing as a kind of ladder, you know the first rung of the ladder is rental housing,” says Alex Creel, senior vice president for government affairs with the California Association of Realtors, the main backer of Proposition 5. “As you move up the ladder, then pretty soon you’re into home ownership.”\u003c/p>\n\u003cp>So-called empty nesters might want to downsize and move into a smaller place, but Creel says that \"under the current property tax rules you can’t do that. So you’re stuck and people are staying put.”\u003c/p>\n\u003cp>Backers of Proposition 5 hope to convince voters that by giving older homeowners economic incentive to move, young families and first-time homebuyers will have more supply from which to choose.\u003c/p>\n\u003cp>But as almost everyone acknowledges, the real impediment to purchasing a home is cost, which is largely driven by supply and demand.\u003c/p>\n\u003cp>“Supply is the real problem,” says Creel. While acknowledging that Proposition 5 does nothing to increase supply, “it moves us in the direction of making more housing available to families who need it.”\u003c/p>\n\u003cp>Even if Proposition 5 passes, don’t count on Kenneth Wilkins’ home to be on the market anytime soon.\u003c/p>\n\u003cp>“I don’t think we’ll sell the property,” he says. “I’d like to live here until I’m 99 or so,” he jokes. “Then I’d like to pass it on to the grandkids and their grandkids.”\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://www.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">The California Dream series\u003c/a> is a statewide media collaboration of CALmatters, KPBS, KPCC, KQED and Capital Public Radio with support from the Corporation for Public Broadcasting, the James Irvine Foundation and the College Futures Foundation.\u003c/em>\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\u003cp>\u003cimg class=\"aligncenter size-full wp-image-11660142\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/04/CADreamBanner.jpg\" alt=\"\" width=\"1867\" height=\"512\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner.jpg 1867w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-160x44.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-800x219.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1020x280.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-1180x324.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-960x263.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-240x66.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-375x103.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/04/CADreamBanner-520x143.jpg 520w\" sizes=\"(max-width: 1867px) 100vw, 1867px\">\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11700626/proposition-5-renews-californias-debate-over-property-taxes","authors":["255"],"programs":["news_72"],"series":["news_21879"],"categories":["news_6266","news_8","news_13"],"tags":["news_20191","news_21577","news_18","news_24455","news_725","news_24255","news_17041"],"featImg":"news_11700619","label":"news_72"},"news_11700609":{"type":"posts","id":"news_11700609","meta":{"index":"posts_1591205157","site":"news","id":"11700609","score":null,"sort":[1540339787000]},"guestAuthors":[],"slug":"proposition-13-promised-to-keep-our-neighborhoods-stable-did-it-work","title":"Proposition 13 Promised to Keep Our Neighborhoods Stable. Did It Work?","publishDate":1540339787,"format":"standard","headTitle":"The California Dream | The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>It was an essential promise of Proposition 13: People would be able to keep their homes, neighborhoods would be stable.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"http://projects.scpr.org/prop-13/\">The California Dream: The Oakland Block That Proposition 13 Built\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"http://projects.scpr.org/prop-13/\">\u003cimg src=\"https://u.s.kqed.net/2018/10/23/Prop13600.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003cp>Since 1978, Proposition 13 has played an outsized role in who can afford to live in California. Did it save the California Dream, or spoil it? To answer that question, we focused on a single block in a middle-class neighborhood in North Oakland.\u003c/p>\n\u003c/aside>\n\u003cp>That promise played a role in the U.S. Supreme Court upholding Proposition 13 when it was challenged.\u003c/p>\n\u003cp>“Because the State has a legitimate interest in local neighborhood preservation, continuity, and stability,” wrote Justice Harry A. Blackmun in the \u003ca href=\"https://supreme.justia.com/cases/federal/us/505/1/#tab-opinion-1959053\" target=\"_blank\" rel=\"noopener\">1992 opinion\u003c/a>, “it legitimately can decide to structure its tax system to discourage rapid turnover in ownership of homes and businesses.”\u003c/p>\n\u003cp>Proposition 13, however, has not stopped gentrification and displacement in neighborhoods across the state.\u003c/p>\n\u003cp>It turns out that as prices soar, the tax benefits of Proposition 13 aren’t enough to stop owners from selling or renting their properties. As for stable property taxes: They offer no direct help to renters.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Which is not to say that there aren’t significant benefits for longtime homeowners.\u003c/p>\n\u003cp>Limited property tax increases have helped keep people like Dorothy in her three-bedroom, one-bath home in North Oakland.\u003c/p>\n\u003cp>Dorothy, whose last name is withheld to protect her privacy, says she bought her modest home back in 1956 for $10,000. Today it’s worth more than $500,000. According to county records, she pays less than $1,300 a year in property taxes. Someone buying that same home today would pay more than $5,000.\u003c/p>\n\u003cp>Dorothy says she’d struggle to pay more. So she’s appreciative of the low taxes.\u003c/p>\n\u003cp>“I’m good,” she says, “I’m still very blessed.”\u003c/p>\n\u003cp>“When I look at how some people had to sell to leave and go other places to live, I’m doing good to still be sitting here since 1956.”\u003c/p>\n\u003cp>Dorothy talks to us through her metal screen door; she says she wasn’t dressed for company. Another neighbor walks over. “I’m just checking on you,” he calls up.\u003c/p>\n\u003cp>Dorothy says her son is encouraging her to move someplace closer to him, someplace with cheaper housing.\u003c/p>\n\u003cp>She’s not ready to go.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch4 style=\"text-align: center;\">\u003ca href=\"https://www.kqed.org/lowdown/19922/the-taxpayers-revolt-how-proposition-13-changed-california-an-illustrated-explainer\" target=\"_blank\" rel=\"noopener\">\u003cspan style=\"color: #000000;\">Prop. 13 Explained\u003c/span>\u003c/a>\u003c/h4>\n\u003cp>\u003ca href=\"https://www.kqed.org/lowdown/19922/the-taxpayers-revolt-how-proposition-13-changed-california-an-illustrated-explainer\" target=\"_blank\" rel=\"noopener\">\u003cimg class=\"alignnone wp-image-11700722 size-full\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/cartoon.png\" alt=\"\" width=\"606\" height=\"302\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/cartoon.png 606w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/cartoon-160x80.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/cartoon-240x120.png 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/cartoon-375x187.png 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/cartoon-520x259.png 520w\" sizes=\"(max-width: 606px) 100vw, 606px\">\u003c/a>\u003c/p>\n\u003c/aside>\n\u003cp>“My church is right around the corner up there, and when I get ready to go to the beauty shop I walk down the street.”\u003c/p>\n\u003cp>Her neighbor, Donna, has lived on this block since 1989. She’s in her early 90s and equally rooted.\u003c/p>\n\u003cp>“More or less keeping on, keeping on, takes about all the energy I have really,” she laughs. “At my age, I wouldn’t dream of moving out, and I have no intention of living in an old person’s home, believe me.”\u003c/p>\n\u003cp>But the Dorothys and Donnas may well be the exception — the outliers a generation after Proposition 13 fundamentally changed California.\u003c/p>\n\u003cp>“In some cases it could help people hold on, dig in their heels,” says Dowell Myers, an urban planning professor at USC. “But against this tide of a [housing] shortage, you can’t stop change at all. It’s like a flood. It’ll overwhelm you eventually, it’ll break through your defenses.”\u003c/p>\n\u003ch4>What is the connection between Proposition 13 and gentrification?\u003c/h4>\n\u003cp>“We don’t know a lot, is the bottom line,” says Isaac William Martin, a professor of sociology at UC San Diego, who has studied the relationship between gentrification and limits on property taxes. “We couldn’t find any evidence that laws like Proposition 13 have any effect on the probability of displacement from gentrifying neighborhoods.”\u003c/p>\n\u003cp>Darrell H. Brown has rented on this block since the mid-'80s. But his landlord has asked him to leave, and he can’t afford another place in the neighborhood.\u003c/p>\n\u003cp>At some level, it comes down to renters vs. owners.\u003c/p>\n\u003cfigure id=\"attachment_11700635\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/gentrification-darrell-alley.jpg\">\u003cimg class=\"wp-image-11700635 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/gentrification-darrell-alley-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-1920x1279.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-1180x786.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-520x346.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Darrell H. Brown has rented on this block since the mid-'80s. But his landlord has asked him to leave, and he can’t afford another place in the neighborhood. \u003ccite>(Sean Havey/California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“When we think about gentrification,” Martin says, “there are people at risk of being displaced, and they are overwhelmingly renters.”\u003c/p>\n\u003cp>Landlords, like other homeowners, benefit from Proposition 13. But, according to the Legislative Analyst’s Office: “The extent to which landlords pass on their tax relief to renters is unclear.”\u003c/p>\n\u003cp>Here’s what we do know: Neighborhoods in California’s in-demand coastal cities are changing quickly. Researchers found the number of gentrified neighborhoods in Los Angeles County jumped 16 percent between 1990 and 2015. San Diego County saw an 18 percent increase in gentrified neighborhoods in the same time period.\u003c/p>\n\u003cp>As the demand for housing in the Bay Area grows, Oakland neighborhoods like this are losing low-income residents, according to research from the Urban Displacement Project at UC Berkeley.\u003c/p>\n\u003cp>On this block where we’ve based this reporting project, Dorothy and Donna are among the few remaining longtime residents. According to data from the 2016 American Community Survey, about 10 percent of residents moved into the area before or during the 1980s. Only 4 percent of the residents in this neighborhood lived here before 1970.\u003c/p>\n\u003cp>Back in 1970, homes in this neighborhood sold for about $13,800, according to the U.S. Census Bureau. Even when you account for inflation, there is a massive gulf between then and now. The cost of a home then, adjusted for inflation, would be about $92,000 today. Median rent in the neighborhood was $86 a month in the 1970s, about $574 in today’s dollars.\u003c/p>\n\u003cp>Today, homes on this block can sell for more than $1 million. A two-bed, two-bath apartment on the block rents for $3,000 a month.\u003c/p>\n\u003cp>And as the prices have changed, the demographics of the neighborhood have changed.\u003c/p>\n\u003cfigure id=\"attachment_11700637\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM.png\">\u003cimg class=\"size-medium wp-image-11700637\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-800x282.png\" alt=\"\" width=\"800\" height=\"282\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-800x282.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-160x56.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-1020x360.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-1200x423.png 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-1920x678.png 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-1180x416.png 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-960x339.png 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-240x85.png 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-375x132.png 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-520x183.png 520w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM.png 2046w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">The North Oakland block's census tract has seen rising home values and a high percentage of new residents in recent decades. \u003ccite>(SOURCE: 2016 American Community Survey)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Back in 1970, about 85 percent of the residents were black, according to U.S. Census data. As of 2016, about 40 percent of the population was white, 33 percent black, about 10 percent Hispanic and 8 percent Asian.\u003c/p>\n\u003cp>In 1970, about 4 percent of adults had four years of college education or more. Now, more than four in 10 residents have earned at least a bachelor’s degree.\u003c/p>\n\u003cp>As real estate in the Bay Area has passed the boiling point, this once-modest neighborhood has also started attracting wealthier residents. According to 2016 census data, median household income was nearly $56,000 a year. Nearly a third of households made more than $100,000.\u003c/p>\n\u003cp>He hates that he has to leave.\u003c/p>\n\u003cp>“My neighbors are great to me,” says Brown. “They are brothers and sisters to me. They care about me like I care about them.”\u003c/p>\n\u003cp>His experience reflects the pain of gentrification.\u003c/p>\n\u003cfigure id=\"attachment_11700638\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux.jpg\">\u003cimg class=\"size-medium wp-image-11700638\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Darrell H. Brown wishes he could afford to to stay in the neighborhood. \u003ccite>(Sean Havey/California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“When a neighborhood gentrifies, longtime residents may start to move out, and that can really be disruptive for the feeling of community and for long-term relationships,” says Martin, the UC San Diego professor.\u003c/p>\n\u003cp>Still, what gentrification means for homeowners and renters is profoundly different. Homeowners often get to sell at a profit, says Martin. Renters are more often evicted or pushed out.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>“It’s important when we think about gentrification to distinguish between the way it can strain the fabric of community, and the way it can harm individuals,” says Martin, “because some of the way it strains the fabric of the community is by benefiting some people more than others.”\u003c/p>\n\n","blocks":[],"excerpt":"Despite its promise, Proposition 13 has not stopped gentrification and displacement in neighborhoods across California.\r\n\r\n","status":"publish","parent":0,"modified":1540394903,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":43,"wordCount":1364},"headData":{"title":"Proposition 13 Promised to Keep Our Neighborhoods Stable. Did It Work? | KQED","description":"Despite its promise, Proposition 13 has not stopped gentrification and displacement in neighborhoods across California.\r\n\r\n","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"11700609 https://ww2.kqed.org/news/?p=11700609","disqusUrl":"https://ww2.kqed.org/news/2018/10/23/proposition-13-promised-to-keep-our-neighborhoods-stable-did-it-work/","disqusTitle":"Proposition 13 Promised to Keep Our Neighborhoods Stable. Did It Work?","nprByline":"Adriene Hill","path":"/news/11700609/proposition-13-promised-to-keep-our-neighborhoods-stable-did-it-work","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>It was an essential promise of Proposition 13: People would be able to keep their homes, neighborhoods would be stable.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"http://projects.scpr.org/prop-13/\">The California Dream: The Oakland Block That Proposition 13 Built\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"http://projects.scpr.org/prop-13/\">\u003cimg src=\"https://u.s.kqed.net/2018/10/23/Prop13600.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003cp>Since 1978, Proposition 13 has played an outsized role in who can afford to live in California. Did it save the California Dream, or spoil it? To answer that question, we focused on a single block in a middle-class neighborhood in North Oakland.\u003c/p>\n\u003c/aside>\n\u003cp>That promise played a role in the U.S. Supreme Court upholding Proposition 13 when it was challenged.\u003c/p>\n\u003cp>“Because the State has a legitimate interest in local neighborhood preservation, continuity, and stability,” wrote Justice Harry A. Blackmun in the \u003ca href=\"https://supreme.justia.com/cases/federal/us/505/1/#tab-opinion-1959053\" target=\"_blank\" rel=\"noopener\">1992 opinion\u003c/a>, “it legitimately can decide to structure its tax system to discourage rapid turnover in ownership of homes and businesses.”\u003c/p>\n\u003cp>Proposition 13, however, has not stopped gentrification and displacement in neighborhoods across the state.\u003c/p>\n\u003cp>It turns out that as prices soar, the tax benefits of Proposition 13 aren’t enough to stop owners from selling or renting their properties. As for stable property taxes: They offer no direct help to renters.\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>Which is not to say that there aren’t significant benefits for longtime homeowners.\u003c/p>\n\u003cp>Limited property tax increases have helped keep people like Dorothy in her three-bedroom, one-bath home in North Oakland.\u003c/p>\n\u003cp>Dorothy, whose last name is withheld to protect her privacy, says she bought her modest home back in 1956 for $10,000. Today it’s worth more than $500,000. According to county records, she pays less than $1,300 a year in property taxes. Someone buying that same home today would pay more than $5,000.\u003c/p>\n\u003cp>Dorothy says she’d struggle to pay more. So she’s appreciative of the low taxes.\u003c/p>\n\u003cp>“I’m good,” she says, “I’m still very blessed.”\u003c/p>\n\u003cp>“When I look at how some people had to sell to leave and go other places to live, I’m doing good to still be sitting here since 1956.”\u003c/p>\n\u003cp>Dorothy talks to us through her metal screen door; she says she wasn’t dressed for company. Another neighbor walks over. “I’m just checking on you,” he calls up.\u003c/p>\n\u003cp>Dorothy says her son is encouraging her to move someplace closer to him, someplace with cheaper housing.\u003c/p>\n\u003cp>She’s not ready to go.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch4 style=\"text-align: center;\">\u003ca href=\"https://www.kqed.org/lowdown/19922/the-taxpayers-revolt-how-proposition-13-changed-california-an-illustrated-explainer\" target=\"_blank\" rel=\"noopener\">\u003cspan style=\"color: #000000;\">Prop. 13 Explained\u003c/span>\u003c/a>\u003c/h4>\n\u003cp>\u003ca href=\"https://www.kqed.org/lowdown/19922/the-taxpayers-revolt-how-proposition-13-changed-california-an-illustrated-explainer\" target=\"_blank\" rel=\"noopener\">\u003cimg class=\"alignnone wp-image-11700722 size-full\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/cartoon.png\" alt=\"\" width=\"606\" height=\"302\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/cartoon.png 606w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/cartoon-160x80.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/cartoon-240x120.png 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/cartoon-375x187.png 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/cartoon-520x259.png 520w\" sizes=\"(max-width: 606px) 100vw, 606px\">\u003c/a>\u003c/p>\n\u003c/aside>\n\u003cp>“My church is right around the corner up there, and when I get ready to go to the beauty shop I walk down the street.”\u003c/p>\n\u003cp>Her neighbor, Donna, has lived on this block since 1989. She’s in her early 90s and equally rooted.\u003c/p>\n\u003cp>“More or less keeping on, keeping on, takes about all the energy I have really,” she laughs. “At my age, I wouldn’t dream of moving out, and I have no intention of living in an old person’s home, believe me.”\u003c/p>\n\u003cp>But the Dorothys and Donnas may well be the exception — the outliers a generation after Proposition 13 fundamentally changed California.\u003c/p>\n\u003cp>“In some cases it could help people hold on, dig in their heels,” says Dowell Myers, an urban planning professor at USC. “But against this tide of a [housing] shortage, you can’t stop change at all. It’s like a flood. It’ll overwhelm you eventually, it’ll break through your defenses.”\u003c/p>\n\u003ch4>What is the connection between Proposition 13 and gentrification?\u003c/h4>\n\u003cp>“We don’t know a lot, is the bottom line,” says Isaac William Martin, a professor of sociology at UC San Diego, who has studied the relationship between gentrification and limits on property taxes. “We couldn’t find any evidence that laws like Proposition 13 have any effect on the probability of displacement from gentrifying neighborhoods.”\u003c/p>\n\u003cp>Darrell H. Brown has rented on this block since the mid-'80s. But his landlord has asked him to leave, and he can’t afford another place in the neighborhood.\u003c/p>\n\u003cp>At some level, it comes down to renters vs. owners.\u003c/p>\n\u003cfigure id=\"attachment_11700635\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/gentrification-darrell-alley.jpg\">\u003cimg class=\"wp-image-11700635 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/gentrification-darrell-alley-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-1920x1279.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-1180x786.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/gentrification-darrell-alley-520x346.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Darrell H. Brown has rented on this block since the mid-'80s. But his landlord has asked him to leave, and he can’t afford another place in the neighborhood. \u003ccite>(Sean Havey/California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“When we think about gentrification,” Martin says, “there are people at risk of being displaced, and they are overwhelmingly renters.”\u003c/p>\n\u003cp>Landlords, like other homeowners, benefit from Proposition 13. But, according to the Legislative Analyst’s Office: “The extent to which landlords pass on their tax relief to renters is unclear.”\u003c/p>\n\u003cp>Here’s what we do know: Neighborhoods in California’s in-demand coastal cities are changing quickly. Researchers found the number of gentrified neighborhoods in Los Angeles County jumped 16 percent between 1990 and 2015. San Diego County saw an 18 percent increase in gentrified neighborhoods in the same time period.\u003c/p>\n\u003cp>As the demand for housing in the Bay Area grows, Oakland neighborhoods like this are losing low-income residents, according to research from the Urban Displacement Project at UC Berkeley.\u003c/p>\n\u003cp>On this block where we’ve based this reporting project, Dorothy and Donna are among the few remaining longtime residents. According to data from the 2016 American Community Survey, about 10 percent of residents moved into the area before or during the 1980s. Only 4 percent of the residents in this neighborhood lived here before 1970.\u003c/p>\n\u003cp>Back in 1970, homes in this neighborhood sold for about $13,800, according to the U.S. Census Bureau. Even when you account for inflation, there is a massive gulf between then and now. The cost of a home then, adjusted for inflation, would be about $92,000 today. Median rent in the neighborhood was $86 a month in the 1970s, about $574 in today’s dollars.\u003c/p>\n\u003cp>Today, homes on this block can sell for more than $1 million. A two-bed, two-bath apartment on the block rents for $3,000 a month.\u003c/p>\n\u003cp>And as the prices have changed, the demographics of the neighborhood have changed.\u003c/p>\n\u003cfigure id=\"attachment_11700637\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM.png\">\u003cimg class=\"size-medium wp-image-11700637\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-800x282.png\" alt=\"\" width=\"800\" height=\"282\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-800x282.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-160x56.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-1020x360.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-1200x423.png 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-1920x678.png 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-1180x416.png 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-960x339.png 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-240x85.png 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-375x132.png 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM-520x183.png 520w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/Screen-Shot-2018-10-23-at-11.38.02-AM.png 2046w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">The North Oakland block's census tract has seen rising home values and a high percentage of new residents in recent decades. \u003ccite>(SOURCE: 2016 American Community Survey)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Back in 1970, about 85 percent of the residents were black, according to U.S. Census data. As of 2016, about 40 percent of the population was white, 33 percent black, about 10 percent Hispanic and 8 percent Asian.\u003c/p>\n\u003cp>In 1970, about 4 percent of adults had four years of college education or more. Now, more than four in 10 residents have earned at least a bachelor’s degree.\u003c/p>\n\u003cp>As real estate in the Bay Area has passed the boiling point, this once-modest neighborhood has also started attracting wealthier residents. According to 2016 census data, median household income was nearly $56,000 a year. Nearly a third of households made more than $100,000.\u003c/p>\n\u003cp>He hates that he has to leave.\u003c/p>\n\u003cp>“My neighbors are great to me,” says Brown. “They are brothers and sisters to me. They care about me like I care about them.”\u003c/p>\n\u003cp>His experience reflects the pain of gentrification.\u003c/p>\n\u003cfigure id=\"attachment_11700638\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux.jpg\">\u003cimg class=\"size-medium wp-image-11700638\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-1920x1280.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/10/The-block-that-Prop.-13-built_-Neighborhood-in-flux-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Darrell H. Brown wishes he could afford to to stay in the neighborhood. \u003ccite>(Sean Havey/California Dream)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“When a neighborhood gentrifies, longtime residents may start to move out, and that can really be disruptive for the feeling of community and for long-term relationships,” says Martin, the UC San Diego professor.\u003c/p>\n\u003cp>Still, what gentrification means for homeowners and renters is profoundly different. Homeowners often get to sell at a profit, says Martin. Renters are more often evicted or pushed out.\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\u003cp>“It’s important when we think about gentrification to distinguish between the way it can strain the fabric of community, and the way it can harm individuals,” says Martin, “because some of the way it strains the fabric of the community is by benefiting some people more than others.”\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11700609/proposition-13-promised-to-keep-our-neighborhoods-stable-did-it-work","authors":["byline_news_11700609"],"programs":["news_72"],"series":["news_21879"],"categories":["news_6266","news_8","news_13"],"tags":["news_3921","news_21577","news_725","news_17041"],"affiliates":["news_7055"],"featImg":"news_11700636","label":"news_72"},"news_11615913":{"type":"posts","id":"news_11615913","meta":{"index":"posts_1591205157","site":"news","id":"11615913","score":null,"sort":[1504980013000]},"guestAuthors":[],"slug":"gentrification-and-climate-change-meet-at-the-north-pole","title":"Gentrification and Climate Change Meet at 'The North Pole'","publishDate":1504980013,"format":"audio","headTitle":"The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>Can you make gentrification and climate change funny? The creators of the comedy web series, \"\u003ca href=\"http://www.thenorthpoleshow.com/\" target=\"_blank\" rel=\"noopener noreferrer\">The North Pole\u003c/a>\" think so. The show revolves around a homegrown trio of best friends who find themselves an endangered species in a rapidly gentrifying Oakland. The California Report's Sasha Khokha talks to \u003ca href=\"http://joshhealey.org/\" target=\"_blank\" rel=\"noopener noreferrer\">Josh Healey\u003c/a>, writer and producer of \"The North Pole,\" which premieres online Sept. 12.\u003c/p>\n\u003cp>\u003cem>This interview was edited for brevity and clarity.\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>This is a hilariously funny but also deadly serious web series about the Bay Area's housing crisis. What gave you the idea to compare people of color getting pushed out of Oakland to polar bears on shrinking glaciers?\u003c/strong>\u003c/p>\n\u003cp>Josh Healey: \"The North Pole\" is a real nickname for the neighborhood of North Oakland. For me, that metaphor, that nickname just felt so real. To be in a city like Oakland or cities across California where it feels like the local climate is changing. The native species, the native communities, are getting pushed out almost to the point of extinction. It felt like a way to talk about these issues in a different way.\u003c/p>\n\u003cp>\u003cstrong>The show centers around three young people: Nina, a teacher at a charter school; Marcus, an aspiring designer; and their friend Benny. They all grew up together and they're watching their neighborhood change all around them. Did the characters come first? Or did the story come first?\u003c/strong>\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Healey: We knew that we wanted to center this story on people who had deep roots in the neighborhood. And really we wanted to do something that showed the multiracial nature of Oakland, of the Bay Area, black and brown folks especially. A lot of these stories are based on real stories.\u003c/p>\n\u003cp>\u003cstrong>You've done a lot of work taking these issues of environmental justice and climate change and translating them into comedy. In \"The North Pole\" you've got this tech company called \"Greengos,\" which is basically designing fake trees. They would offset carbon emissions but they would also have surveillance cameras.\u003c/strong>\u003c/p>\n\u003cp>Healey: I love Al Gore, he's cool. Bill Nye the Science Guy? That's my dude. But the PowerPoint presentations and facts and figures are not enough to reach people. We wanted to do something that addresses the seriousness but also brought the humor, the joy. Comedy is the way to introduce complex issues. It's a way to acknowledge that even when we're thinking and talking about these serious things, we also have the little things that make us smile. If we don't acknowledge those things, then we're losing the humanity that we're trying to fight for in the first place.\u003c/p>\n\u003cp>https://youtu.be/twITH7SxWOo\u003c/p>\n\u003cp>\u003cstrong>You produced this show in conjunction with a\u003ca href=\"http://movementgeneration.org/\" target=\"_blank\" rel=\"noopener noreferrer\"> nonprofit\u003c/a> that uses the arts to raise awareness around climate change. It was funded through a \u003ca href=\"https://www.kickstarter.com/projects/1895822190/the-north-pole-a-comedic-web-series-for-the-people\" target=\"_blank\" rel=\"noopener noreferrer\">Kickstarter\u003c/a> campaign, not through a big studio like Amazon or Netflix. What was your pitch to people who contributed?\u003c/strong>\u003c/p>\n\u003cp>Healey: If we're going to change the politics or change the policies around these issues, we have to change the story. We have to rethink and re-imagine who are the heroes and who are the villains. You don't have very many shows based in the Bay Area, centered on people of color, on young people who are trying to navigate these serious issues in a creative, fun way. It helps that we brought in a lot of our friends and homies in the artistic and activist community. Folks like comedian \u003ca href=\"http://www.wkamaubell.com/\" target=\"_blank\" rel=\"noopener noreferrer\">W. Kamau Bell\u003c/a>, rappers\u003ca href=\"http://realmistahfab.com/\" target=\"_blank\" rel=\"noopener noreferrer\"> Mistah F.A.B\u003c/a>. and Boots Riley and one of my great \"sheroes,\" \u003ca href=\"https://www.erickahuggins.com/\" target=\"_blank\" rel=\"noopener noreferrer\">Ericka Huggins\u003c/a>, one of the former leaders of Black Panther Party.\u003c/p>\n\u003cp>\u003cstrong>\"The North Pole\" is a lot about feeling threatened by newcomers who are driving up prices. You are somewhat of an outsider too, from D.C., not Oakland. What was it like to come in and bring that kind of outsider perspective? \u003c/strong>\u003c/p>\n\u003cp>Healey: I'm the first to acknowledge I'm not from here originally. A lot of times these conversations get stuck in this cycle of outsider versus insider, homegrown versus newcomer. I look at it differently. Gentrification is just a new name on something that's been going on in America for a long time. I'm a white boy from Washington, D.C. And I think climate change is just a new name on exacerbated environmental destruction that's been going on for hundreds of years. No matter where you're from, you have to acknowledge the root causes of these issues. It's deeper than the new coffee shop or the new gluten-free doughnut spot on your block. Those are those are the immediate symbols of something that's gone much deeper. Who are the companies and the politicians and the policies that are really pushing this?\u003c/p>\n\u003cp>\u003cstrong>After people watch this, what do you hope it empowers them to do?\u003c/strong>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Healey: We want people to stand up and to join with their neighbors, to join with their community, to join with their families and to be part of something. We want to activate audiences to become active participants in not just consuming information, but changing the story and becoming part of the story themselves. Individually watching a web series? That's not going to do nothing. But we also know that some things can spark and become wildfires. And right now we need wildfires of hope. We need wildfires of joy. We need laughter and liberation. We're trying to broaden the conversation, change the world and talk a little mess along the way.\u003c/p>\n\n","blocks":[],"excerpt":"A new comedy compares people getting pushed out by gentrification in Oakland to polar bears on shrinking glaciers.","status":"publish","parent":0,"modified":1505232253,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":16,"wordCount":961},"headData":{"title":"Gentrification and Climate Change Meet at 'The North Pole' | KQED","description":"A new comedy compares people getting pushed out by gentrification in Oakland to polar bears on shrinking glaciers.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"11615913 https://ww2.kqed.org/news/?p=11615913","disqusUrl":"https://ww2.kqed.org/news/2017/09/09/gentrification-and-climate-change-meet-at-the-north-pole/","disqusTitle":"Gentrification and Climate Change Meet at 'The North Pole'","audioUrl":"https://www.kqed.org/.stream/anon/radio/tcrmag/2017/09/TCRPM20170908TheNorthPole.mp3","path":"/news/11615913/gentrification-and-climate-change-meet-at-the-north-pole","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Can you make gentrification and climate change funny? The creators of the comedy web series, \"\u003ca href=\"http://www.thenorthpoleshow.com/\" target=\"_blank\" rel=\"noopener noreferrer\">The North Pole\u003c/a>\" think so. The show revolves around a homegrown trio of best friends who find themselves an endangered species in a rapidly gentrifying Oakland. The California Report's Sasha Khokha talks to \u003ca href=\"http://joshhealey.org/\" target=\"_blank\" rel=\"noopener noreferrer\">Josh Healey\u003c/a>, writer and producer of \"The North Pole,\" which premieres online Sept. 12.\u003c/p>\n\u003cp>\u003cem>This interview was edited for brevity and clarity.\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>This is a hilariously funny but also deadly serious web series about the Bay Area's housing crisis. What gave you the idea to compare people of color getting pushed out of Oakland to polar bears on shrinking glaciers?\u003c/strong>\u003c/p>\n\u003cp>Josh Healey: \"The North Pole\" is a real nickname for the neighborhood of North Oakland. For me, that metaphor, that nickname just felt so real. To be in a city like Oakland or cities across California where it feels like the local climate is changing. The native species, the native communities, are getting pushed out almost to the point of extinction. It felt like a way to talk about these issues in a different way.\u003c/p>\n\u003cp>\u003cstrong>The show centers around three young people: Nina, a teacher at a charter school; Marcus, an aspiring designer; and their friend Benny. They all grew up together and they're watching their neighborhood change all around them. Did the characters come first? Or did the story come first?\u003c/strong>\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>Healey: We knew that we wanted to center this story on people who had deep roots in the neighborhood. And really we wanted to do something that showed the multiracial nature of Oakland, of the Bay Area, black and brown folks especially. A lot of these stories are based on real stories.\u003c/p>\n\u003cp>\u003cstrong>You've done a lot of work taking these issues of environmental justice and climate change and translating them into comedy. In \"The North Pole\" you've got this tech company called \"Greengos,\" which is basically designing fake trees. They would offset carbon emissions but they would also have surveillance cameras.\u003c/strong>\u003c/p>\n\u003cp>Healey: I love Al Gore, he's cool. Bill Nye the Science Guy? That's my dude. But the PowerPoint presentations and facts and figures are not enough to reach people. We wanted to do something that addresses the seriousness but also brought the humor, the joy. Comedy is the way to introduce complex issues. It's a way to acknowledge that even when we're thinking and talking about these serious things, we also have the little things that make us smile. If we don't acknowledge those things, then we're losing the humanity that we're trying to fight for in the first place.\u003c/p>\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/twITH7SxWOo'\n title='//www.youtube.com/embed/twITH7SxWOo'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003cp>\u003cstrong>You produced this show in conjunction with a\u003ca href=\"http://movementgeneration.org/\" target=\"_blank\" rel=\"noopener noreferrer\"> nonprofit\u003c/a> that uses the arts to raise awareness around climate change. It was funded through a \u003ca href=\"https://www.kickstarter.com/projects/1895822190/the-north-pole-a-comedic-web-series-for-the-people\" target=\"_blank\" rel=\"noopener noreferrer\">Kickstarter\u003c/a> campaign, not through a big studio like Amazon or Netflix. What was your pitch to people who contributed?\u003c/strong>\u003c/p>\n\u003cp>Healey: If we're going to change the politics or change the policies around these issues, we have to change the story. We have to rethink and re-imagine who are the heroes and who are the villains. You don't have very many shows based in the Bay Area, centered on people of color, on young people who are trying to navigate these serious issues in a creative, fun way. It helps that we brought in a lot of our friends and homies in the artistic and activist community. Folks like comedian \u003ca href=\"http://www.wkamaubell.com/\" target=\"_blank\" rel=\"noopener noreferrer\">W. Kamau Bell\u003c/a>, rappers\u003ca href=\"http://realmistahfab.com/\" target=\"_blank\" rel=\"noopener noreferrer\"> Mistah F.A.B\u003c/a>. and Boots Riley and one of my great \"sheroes,\" \u003ca href=\"https://www.erickahuggins.com/\" target=\"_blank\" rel=\"noopener noreferrer\">Ericka Huggins\u003c/a>, one of the former leaders of Black Panther Party.\u003c/p>\n\u003cp>\u003cstrong>\"The North Pole\" is a lot about feeling threatened by newcomers who are driving up prices. You are somewhat of an outsider too, from D.C., not Oakland. What was it like to come in and bring that kind of outsider perspective? \u003c/strong>\u003c/p>\n\u003cp>Healey: I'm the first to acknowledge I'm not from here originally. A lot of times these conversations get stuck in this cycle of outsider versus insider, homegrown versus newcomer. I look at it differently. Gentrification is just a new name on something that's been going on in America for a long time. I'm a white boy from Washington, D.C. And I think climate change is just a new name on exacerbated environmental destruction that's been going on for hundreds of years. No matter where you're from, you have to acknowledge the root causes of these issues. It's deeper than the new coffee shop or the new gluten-free doughnut spot on your block. Those are those are the immediate symbols of something that's gone much deeper. Who are the companies and the politicians and the policies that are really pushing this?\u003c/p>\n\u003cp>\u003cstrong>After people watch this, what do you hope it empowers them to do?\u003c/strong>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Healey: We want people to stand up and to join with their neighbors, to join with their community, to join with their families and to be part of something. We want to activate audiences to become active participants in not just consuming information, but changing the story and becoming part of the story themselves. Individually watching a web series? That's not going to do nothing. But we also know that some things can spark and become wildfires. And right now we need wildfires of hope. We need wildfires of joy. We need laughter and liberation. We're trying to broaden the conversation, change the world and talk a little mess along the way.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11615913/gentrification-and-climate-change-meet-at-the-north-pole","authors":["107","254"],"programs":["news_6944","news_72"],"categories":["news_223","news_8"],"tags":["news_19129","news_255","news_4613","news_21577","news_17286","news_21578","news_17613"],"featImg":"news_11615914","label":"news_72"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? 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. Michel Martin hosts on the weekends.","airtime":"MON-FRI 1pm-2pm, 4:30pm-6:30pm\u003cbr />SAT-SUN 5pm-6pm","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2021/10/ATC_1400.jpg","officialWebsiteLink":"https://www.npr.org/programs/all-things-considered/","meta":{"site":"news","source":"npr"},"link":"/radio/program/all-things-considered"},"american-suburb-podcast":{"id":"american-suburb-podcast","title":"American Suburb: The Podcast","tagline":"The flip side of gentrification, told through one town","info":"Gentrification is changing cities across America, forcing people from neighborhoods they have long called home. Call them the displaced. Now those priced out of the Bay Area are looking for a better life in an unlikely place. American Suburb follows this migration to one California town along the Delta, 45 miles from San Francisco. 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We cover topics like how fed-up administrators are developing surprising tactics to deal with classroom disruptions; how listening to podcasts are helping kids develop reading skills; the consequences of overparenting; and why interdisciplinary learning can engage students on all ends of the traditional achievement spectrum. This podcast is part of the MindShift education site, a division of KQED News. KQED is an NPR/PBS member station based in San Francisco. 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Is it the officers, or the public they've sworn to serve?","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/01/OOW_Tile_Final.png","imageAlt":"On Our Watch from NPR and KQED","officialWebsiteLink":"/podcasts/onourwatch","meta":{"site":"news","source":"kqed","order":"1"},"link":"/podcasts/onourwatch","subscribe":{"apple":"https://podcasts.apple.com/podcast/id1567098962","google":"https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5ucHIub3JnLzUxMDM2MC9wb2RjYXN0LnhtbD9zYz1nb29nbGVwb2RjYXN0cw","npr":"https://rpb3r.app.goo.gl/onourwatch","spotify":"https://open.spotify.com/show/0OLWoyizopu6tY1XiuX70x","tuneIn":"https://tunein.com/radio/On-Our-Watch-p1436229/","stitcher":"https://www.stitcher.com/show/on-our-watch","rss":"https://feeds.npr.org/510360/podcast.xml"}},"on-the-media":{"id":"on-the-media","title":"On The Media","info":"Our weekly podcast explores how the media 'sausage' is made, casts an incisive eye on fluctuations in the marketplace of ideas, and examines threats to the freedom of information and expression in America and abroad. 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